Semi-Annual Securities Report
Interim Period of the 74th Fiscal Year
(From April 1, 2021 to September 30, 2021)1

Marudai Food Co., Ltd.
E004581This Semi-Annual Securities Report has been translated from the Japanese original of the Quarterly Securities Reportfor the Second Quarter of the 74th Fiscal Year (from July 1, 2021 to September 30, 2021) 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, 2021 through September 30, 2021.

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 74th 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. ....................................................................................................................... 6
III. Information about Reporting Company ................................................................................................... 7
1. Company’s shares, etc........................................................................................................................ 7
2. Directors (and other officers) ............................................................................................................. 9
IV. Financial Information ..............................................................................................................................10
1. Quarterly Consolidated Financial Statements ................................................................................... 11
2. Other .................................................................................................................................................25
Part II Information about Reporting Company’s Guarantor, etc. ..................................................................... 26

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 12, 2021

[Quarterly Accounting Period]

The second quarter of the 74th fiscal year (From July 1, 2021 to September 30, 2021)[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 of73rd fiscal year

First half of
74th fiscal year

73rd fiscal year

Period of accountFrom April 1, 2020
to September 30, 2020

From April 1, 2021
to September 30, 2021

From April 1, 2020
to March 31, 2021

Net sales(Millions of yen)

112,536[57,141]

109,204[55,520]

223,000

Ordinary profit (loss)(Millions of yen)

(588)

356

180

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

247
[465]

98
[(80)]

412

Comprehensive income(Millions of yen)

1,291

(169)

3,555

Net assets(Millions of yen)

75,48576,44877,750Total assets(Millions of yen)

133,548

132,622

131,342

Profit (loss) per share

(Yen)

9.75
[18.33]3.88[(3.16)]

16.23

Diluted profit per share

(Yen)

－

－

－

(%)

56.1

57.2

58.7

Equity ratio

Net cash provided by (used in)(Millions of yen)
2,095
4,716
7,673
operating activities
Net cash provided by (used in)(Millions of yen)
(3,737)(2,475)(5,388)
investing activities
Net cash provided by (used in)(Millions of yen)
1,291
(2,113)(2,053)
financing activities
Cash and cash equivalents at end(Millions of yen)
7,894
8,604
8,476
of period(Notes) 1. As the Company has prepared quarterly consolidated financial statements, key financial data for the reporting company
are not stated.
2. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) from the beginning of the first quarter of the current fiscal year. Accordingly, key financial data for the first half, thesecond quarter and the entire period of the previous fiscal year are stated as figures to which the above accounting
standard has been retrospectively applied.
3. We have changed the accounting principle (method of recording distribution expenses) since the first quarter of the 74th
fiscal year. Accordingly, key financial data for the first half, the second quarter and the entire period of the 73rd fiscal year
are stated as figures to which the new method has been retrospectively applied.
4. Diluted profit per share is not stated because there is no dilutive security.
5. 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 74th 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.
If the COVID-19 pandemic is protracted and it takes some time for economic conditions and consumer spending thereafter tonormalize, it may have a significant impact on the business activities of the Group.

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, 2021.
Please note that we have applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)and other standards from the beginning of the first quarter of the current fiscal year. We have also changed the method of recording
distribution expenses. We make year-on-year comparisons and analyses of the data with quarterly/full-year figures of the previous
fiscal year using the figures to which these changes in accounting policies have been retrospectively applied.
(1) Financial position and operating results
During the first half of the current fiscal year, the Japanese economy continued to be under severe conditions due to the
COVID-19 pandemic. The overall outlook for the economy remains unpredictable as there is the risk of an economic downturnin and outside Japan due to COVID-19, although certain economic recovery is expected thanks to thorough preventive measures,progress in vaccination and the government’s various policy packages.
The industry in which the Marudai Food Group operates continued to face severe conditions, as COVID-19 state of emergency
and quasi emergency in many prefectures were extended to September 30, 2021, leading to sluggish demand for eating out, while
consumers tended to save money due to uncertainties over economic outlook and price competition has become harsher.
Regarding the meat market, domestic beef prices rallied after having slumped in the previous year due to a drop in demand.
Meanwhile, domestic pork prices were lower than the level of the previous year when demand for home consumption was strong,
although they recovered to be at the same level as the previous year in the latter half of the period. Imported beef prices werehigher than the previous year’s level due to a jump in the prices in exporter countries owing to recovery in demand overseas
while imported pork prices have been significantly higher than the previous year, when they tended to fluctuate, due mainly to astronger consumption overseas and soaring livestock feed prices.
In this tough situation, the Group, a comprehensive food manufacturer that supplies consumers with safer and healthier foodproducts, has pushed ahead with its corporate operations, aiming to be a company whose own value is thoroughly recognized insociety.
(Financial position)
Consolidated total assets as of September 30, 2021 were 132,622 million yen, an increase of 1,279 million yen from the endof the previous fiscal year, due mainly to increases in merchandise and finished goods of 782 million yen and in property, plantand equipment of 595 million yen.
Consolidated liabilities increased by 2,581 million yen from the end of the previous fiscal year to 56,173 million yen, due
mainly to increases in notes and accounts payable - trade of 2,416 million yen and in accounts payable - other of 356 million yen,despite a decrease in interest-bearing liabilities of 224 million yen.
Consolidated net assets as of September 30, 2021 were 76,448 million yen, a decrease of 1,301 million yen from the end of
the previous fiscal year, due mainly to dividends of retained earnings of 762 million yen, the acquisition of treasury shares of 368
million yen, and a decrease in valuation difference on available-for-sale securities of 329 million yen.
As a result, the equity ratio of the Company was 57.2%, a decrease of 1.5 percent point from the end of the previous fiscal―3―

year.
(Operating results)
Consolidated net sales for the first half of the current fiscal year were 109,204 million yen, a decrease of 3.0% year on year;
consolidated operating profit was 101 million yen, compared to consolidated operating loss of 864 million yen for the first halfof the previous fiscal year; consolidated ordinary profit was 356 million yen, compared to consolidated ordinary loss of 588
million yen for the first half of the previous fiscal year; and consolidated profit attributable to owners of parent was 98 million
yen, a decrease of 60.3% year on year.
Overview of business results for each segment are as follows:
1) Processed Food Products operations
The Ham and Sausage Products department strove to promote its core products, including “Kunseiya-Ripened Pork Sausage”
that won three awards from international institutions that assess product quality, such as “Monde Selection 2021 Gold Award.”
We also launched new products such as “Gute Wurst Prime Pork Sausage” that boasts rich flavor and juiciness to increase thesales of the department. Despite these initiatives, due mainly to a reactionary drop from steeply increased demand for homeconsumption during the previous year, harsher competition and sluggish summer gift season, net sales in the Ham and Sausage
Products department decreased by 7.2% year on year.
In the Precooked & Processed Foods department, while the sales of retort-pouch curry products such as the “Bistro Club
Beef Curry” series decreased year on year due to a reactionary drop from the previous year’s increase in demand for storageas emergency supplies at home, the sales of precooked soup/sauce products such as the “Bistro Club Doria Sause” series
showed steady growth and new products, including the “Tabi-suru Chicken” series that allows people to easily enjoy specialty
chicken dishes around the world at home, were launched. The net sales of the Precooked & Processed Foods department
increased 0.7% compared to the same period of the previous fiscal year, due mainly to the sales recovery of precooked riceproducts for convenience stores and the contribution of the sales of Toraku Foods Co., Ltd. that became the Company’s
subsidiary on July 1, 2020, despite the significant drop in the sales of beverages with black tapioca.
As a result, net sales in the Processed Food Products operations segment amounted to 74,337 million yen, a decrease of
3.0% year on year. A decrease in raw material costs and our efforts to reduce costs by streamlining allowed the said segment
to reduce its loss but it still posted segment loss of 239 million yen (compared to segment loss of 1,199 million yen for thesame period of the previous fiscal year), owing mainly to lower net sales.
2) Meat Products operations
The sales of beef increased from the same period of the previous fiscal year, due mainly to our strengthened sales efforts
targeting large-scale retailers and an increase in selling prices, while the sales of commercial food products for the restaurant
industry remained sluggish. The sales of pork decreased from the same period of the previous fiscal year, due mainly to therevision of product portfolio with the aim of securing profitability and a reactionary drop from increased demand for homeconsumption during the previous year.
As a result, net sales in the Meet Products operations segment amounted to 34,783 million yen, a decrease of 2.9% year on
year. Its segment income increased by 3.6% year on year to 308 million yen, thanks to the effort to improve profitability byrevising product portfolio though it was difficult to pass steep increases in purchasing prices for domestic beef/imported meaton to selling prices.
3) Other
Net sales in Other segment decreased by 1.2% year on year to 83 million yen, and segment income decreased by 10.4% year
on year to 33 million yen.

―4―(2) Cash flows(Millions of yen)First half ofprevious fiscal year
Net cash provided by (used in) operating
activities
Net cash provided by (used in) investing
activities
Net cash provided by (used in) financing
activities
Net increase (decrease) in cash and cash
equivalents

First half ofcurrent fiscal year

Changes

2,095

4,716

2,62

(3,737)(2,475)

1,26

1,291

(2,113)(3,404

(350)

128

478

7,894

8,604

710

Cash and cash equivalents at end of period

Net cash provided by (used in) operating activities increased by 4,716 million yen due mainly to factors such as the recordingof depreciation and a decrease in working capital.
Net cash provided by (used in) investing activities decreased by 2,475 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 decreased by 2,113 million yen due mainly to a decrease in interest-bearing
liabilities, payment of dividends, and purchase of treasury shares.
As a result, consolidated cash and cash equivalents as of September 30, 2021 increased by 128 million yen from the end of theprevious fiscal year to 8,604 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 360 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.
(6) Major facilities
A plan to establish a major facility that was determined during the first half of the current fiscal year and its progress are as
follows:

Company
nameTorakuFoods
Co., Ltd.

Business place(Location)

Head Officeand plant(Higashinadaku, Kobe-shi,
Hyogo
Prefecture)

Name ofbusinesssegment

Detail offacility

Planned amount ofinvestment
Amount Fundraising Starting date EstimatedTotal amountmethodcompletion datealready paid
(Millions of(Millions of
yen)
yen)

Processed
Food
Manufacturing
Products facilities, etc.
operations

750(Note) The amounts above are exclusive of consumption taxes.

―5―-

By our own
capital andleases

September
2021

July 2022

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.

III. Information about Reporting Company
1. Company’s shares, etc.
(1) Total number of shares, etc.
1) Authorized shares
As of September 30, 2021
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 12, 2021)(September 30, 2021)

Class

Stock exchange
on which the Company is listed

Common stock

26,505,581

Tokyo Stock Exchange
26,505,581 (First section)
Frankfurt Stock Exchange

Total

26,505,581

26,505,581

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, 2021
to September 30, 2021

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, 2021
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

2,007

7.96

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

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

1,638

6.50

1,192

4.73

1,050

4.16

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

3.52

Sumitomo Mitsui Trust Bank, Limited

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

864

3.43

Sumitomo Life Insurance Company

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

860

3.41

The Norinchukin Bank

1-13-2 Yuraku-cho, Chiyoda-ku, Tokyo

642

2.55

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(6-27-30 Shinjuku, Shinjuku-ku, Tokyo)

413

1.64

Yoshiyuki Komori

Toyonaka-shi, Osaka

320

1.27

9,878

39.20

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 1,308,766 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)
1,638 thousand shares
6. The change report on large shareholdings that was made available to the public on August 19, 2021 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 13, 2021. However, since the Company has not been able
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, 2021, 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 sharecertificates, etc. held
Name
Address
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

699

2.64

Nikko Asset Management Co., Ltd.

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

283

1.07

1,847

6.97

Total

－

7. The change report on large shareholdings that was made available to the public on September 24, 2021 states that SMBC
Nikko Securities Inc. and its joint holders, Sumitomo Mitsui Banking Corporation owned the following shares as of
September 15, 2021. However, since the Company has not been able to confirm the actual number of shares alleged to beheld by SMBC Nikko Securities Inc. as of September 30, 2021, the Company does not include its information in the major
shareholders above.
The details of the change report on large shareholdings are as follows:

―7―

Name

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

Address

SMBC Nikko Securities Inc.

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

767

2.89

Sumitomo Mitsui Banking Corporation

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

887

3.35

1,654

6.24

Total

－

(6) Voting rights
1) Issued shares
As of September 30, 2021
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
1,308,700－－

Shares with full voting rights (others)

Common stock

25,158,700

Shares below one unit

Common stock

38,181－－

26,505,581－－

Total number of issued shares

251,587－

Total voting rights held by all
251,587－－
shareholders(Note) The number of shares of common stock in “Shares below one unit” includes 66 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, 2021
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)
1,308,700－

1,308,700

4.93

1,308,700－

1,308,700

4.93

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, 2021 through September 30, 2021) and the first half (from April 1, 2021
through September 30, 2021) of the current fiscal year underwent a quarterly review by KPMG AZSA LLC.

―9―

1. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2021)

Previous fiscal year
(As of March 31,2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

8,476
23,833

8,604
23,470

Merchandise and finished goods
Work in process

9,693
377

10,475611

Raw materials and supplies
Other

5,797
1,900

6,271
2,043

Allowance for doubtful accounts

(12)

(11)

Total current assets

50,06551,46561,928(43,776)

62,174(44,289

Buildings and structures, net

18,152

17,884

Machinery, equipment and vehicles
Accumulated depreciation

69,987(54,174)

72,599(55,777

15,812

16,821

5,048(3,480)5,084(3,544

1,567

1,540

Land

18,83918,722

Leased assets
Accumulated depreciation

8,344(3,279)9,057(3,715

5,065

5,342

Construction in progress

908

630

Total property, plant and equipment

60,34660,942Intangible assets

2,779

2,568

Investments and other assets
Investment securities

13,314

12,830Shares of subsidiaries and associates
Long-term loans receivable

166
18

188
17

Retirement benefit asset
Deferred tax assets

1,580
317

1,833
356

Other
Allowance for doubtful accounts

2,866
(112)

2,528
(110)

Total investments and other assets

18,15017,645

81,277

81,156

131,342

132,622

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

Total non-current assets
Total assets―10―

(Millions of yen)
Second quarter ofcurrent fiscal year
(As of September 30, 2021)

Previous fiscal year
(As of March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

20,236
7,890

22,653
8,712

Current portion of long-term borrowings
Lease obligations

2,657
905

2,411
989

Accounts payable - other
Income taxes payable

6,841
187

7,198
131

Accrued consumption taxes
Provision for bonuses

264
850

252
958

Other

1,376

1,452

Total current liabilities

41,21044,758Non-current liabilities
Long-term borrowings

4,649

3,564

Lease obligations
Deferred tax liabilities

4,296
1,470

4,495
1,359

Retirement benefit liability
Other

1,308
657

1,322
672

Total non-current liabilities

12,381

11,41453,59256,173

Shareholders’ equity
Share capital

6,716

6,716

Capital surplus
Retained earnings

22,08645,27022,08644,607

Treasury shares(2,697)(3,066

Total shareholders’ equity

71,37570,343

5,944
34

5,614
32

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

34
(251)

Total accumulated other comprehensive income

5,761

34
(200)
5,481

Non-controlling interests

612

623

Total net assets

77,75076,448131,342

132,622

Total liabilities and net assets―11―(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, 2020 to
September 30, 2020)
112,536
95,881(Millions of yen)First half ofcurrent fiscal year
(From April 1, 2021 toSeptember 30, 2021)
109,204
92,599Gross profit

16,655

16,605

Selling, general and administrative expenses* 17,520* 16,503

Operating profit (loss)

(864)

101

Non-operating income
Interest income

88Dividend income
Rental income from real estate

154
80

160
86

Other

234

150

Total non-operating income

477

406

118
82

111
39

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

201

151

(588)

356

Gain on disposal of non-current assets
Gain on bargain purchase

32
997

129

Total extraordinary income

1,030

129

104
42

222
9

Ordinary profit (loss)
Extraordinary income－

Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on valuation of investment securities－

24

Total extraordinary losses

146

255

Profit before income taxes

295

230

Income taxes - current
Income taxes - deferred

214
(195)

134
(16)

Total income taxes

18

117

Profit277

113

Profit attributable to non-controlling interests

29

14

Profit attributable to owners of parent

247

98

―12―

Quarterly Consolidated Statements of Comprehensive Income[First half of fiscal year]

277(Millions of yen)First half ofcurrent fiscal year
(From April 1, 2021 toSeptember 30, 2021)
113

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

916
(3)

(331)
(2)

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

106

51

(5)

－

1,014

(282)

1,291

(169)

1,262

(184)

29

14

First half ofprevious fiscal year
(From April 1, 2020 to
September 30, 2020)
ProfitOther comprehensive income

Comprehensive income
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, 2020 to
September 30, 2020)
57,141
48,599(Millions of yen)
Second quarter ofcurrent fiscal year
(From July 1, 2021 toSeptember 30, 2021)
55,52047,117Gross profit

8,541

8,402

Selling, general and administrative expenses

9,237

8,522

Operating loss

(695)

Non-operating income
Interest income

(119)

4

4

Dividend income
Rental income from real estate

149
41

155
41

Other

123

52

Total non-operating income

318

254

62
51

56
19

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

113

75

(490)

58

Gain on disposal of non-current assets
Gain on bargain purchase

11
997

5
－

Total extraordinary income

1,009

5

Loss on disposal of non-current assets
Impairment losses

65
7

94
9

Loss on valuation of investment securities－

3

Total extraordinary losses

73

107

Profit (loss) before income taxes

446

(43)

Income taxes - current
Income taxes - deferred

7
(37)

(80)
118

Total income taxes

(29)

38

Profit (loss)

476

(81)

Profit (loss) attributable to non-controlling interests

10

(1)

Profit (loss) attributable to owners of parent

465

(80)

Ordinary profit (loss)
Extraordinary income

Extraordinary losses―14―Quarterly Consolidated Statements of Comprehensive Income[Second quarter of fiscal year]

476(Millions of yen)
Second quarter ofcurrent fiscal year
(From July 1, 2021 toSeptember 30, 2021)(81)

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

433
(9)

186
15

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

53

25

4

(4)

482

222

958

141

948

142

10

(1)

Second quarter ofprevious fiscal year
(From July 1, 2020 to
September 30, 2020)
Profit (loss)
Other comprehensive income

Comprehensive income
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, 2021 toSeptember 30, 2021)

First half ofprevious fiscal year
(From April 1, 2020 to
September 30, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses

295

230

3,74
42

3,820
9

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

(1)
(126)

(3)
(172)

Gain on bargain purchase
Interest and dividend income

(997)
(163)

－
(169)

Interest expenses
Loss (gain) on valuation of investment securities

118

111
24

－
71
1,65

92
366

Decrease (increase) in inventories
Increase (decrease) in trade payables

(863)
(1,14

(1,485
2,397

Increase (decrease) in accrued consumption taxes
Other, net

(288)
112

(11)
(235)

Loss (gain) on disposal of non-current assets
Decrease (increase) in trade receivables

Subtotal

2,46

4,974

Interest and dividends received

172

174

Interest paid
Income taxes paid

(117)
(329)

(111)
(179)

Income taxes refund
Extra retirement payments

－
(90)

62
(204)

Net cash provided by (used in) operating activities

2,09

Cash flows from investing activities
Purchase of investment securities

4,716

(17)

(18)

Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net

(3,03
141

(2,914
580

(1,19

－

364

(122)

Net cash provided by (used in) investing activities(3,73(2,475

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

2,92

822

2,44
(2,68

－
(1,330

Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Dividends paid

(458)
(889)

(469)
(761)

Purchase of treasury shares
Other, net

(40)
(3)

(368)
(3)

Net cash provided by (used in) financing activities

1,29

Net increase (decrease) in cash and cash equivalents(350)

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period―16―(2,113
128

8,24

8,476

* 7,89* 8,604

[Notes](Uncertainties of entity's ability to continue as going concern)
Not applicable.
(Changes in scope of consolidation and scope of companies to which the equity method is applied)(1) Changes in scope of consolidation
Kyomigawa Co., Ltd. was excluded from the scope of consolidation as the liquidation of the company concerned wascompleted during the second quarter of the current fiscal year.
(2) Number of consolidated subsidiaries after the change:
27(Changes in accounting policies)(Application of an accounting standard for revenue recognition, etc.)
The Company began applying the “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan(ASBJ) Statement No. 29, March 31, 2020, hereinafter referred to as the “Revenue Recognition Standard”), etc., at the beginningof the first quarter of the current fiscal year, and recognizing revenue when it transfers the control of promised goods or services
to a customer, based on amounts expected to be received in exchange for such goods or services. As a result, we have changed
an accounting method in which a portion of distribution expenses and promotion expenses, etc., which had previously beenrecorded as selling, general and administrative expenses, are now deducted from net sales. In principle, this change in accounting
policies has been applied retrospectively, including the quarterly/full-year consolidated financial statements for the previous
fiscal year. However, the following method that is provided in Paragraph 85 of the Revenue Recognition Standard is applied:- For contracts under which almost all of revenues had been recognized before the beginning of the previous fiscal year inaccordance with the previous revenue recognition policy, comparative information shall not be revised retrospectively.
As a result, when compared to figures not applying the new Revenue Recognition Standard, both net sales and selling, generaland administrative expenses for the first half of the previous fiscal year decreased by 5,750 million yen, respectively. In addition,
both accounts payable - other and accounts receivable - trade at the end of the fiscal year ended March 31, 2021 decreased by
2,304 million yen, respectively.
In addition, in accordance with the transitional treatment prescribed in Paragraph 28-15 of the “Accounting Standard for
Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), the breakdown of revenues generated from contracts
with customers for the first half of the previous fiscal year are omitted.
(Application of an accounting standard for fair value measurement, etc.)
The Company began applying the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019,
hereinafter referred to as the “Fair Value Measurement Standard”), etc., at the beginning of the first quarter of the current fiscal
year, and adopts new accounting policies that are stipulated by the Fair Value Measurement Standard, etc. in accordance withthe transitional treatment prescribed in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This change has no effect on thequarterly consolidated financial statements.

―17―

(Change in the method of recording distribution expenses)
The Group has decided to start recording a portion of distribution expenses, which had previously been recorded as selling,
general and administrative expenses, as manufacturing costs from the beginning of the first quarter of the current fiscal year.
This change was implemented to make our profit and loss management better reflect the real situations (regarding relevant
divisions, items, customers, etc.) within the Group, including the revision of allocation method of distribution expenses, while
the importance of distribution expenses are growing, taking advantage of the system unification of the Company and its major
consolidated subsidiaries thanks to the update of the enterprise system.
This change in the accounting policies has been applied retrospectively, including the quarterly/full-year consolidated
financial statements for the previous fiscal year. As a result, when compared to figures not applying the new accounting policy,
merchandise and finished goods increased by 100 million yen, deferred tax liabilities increased by 30 million yen, and retained
earnings increased by 70 million yen on the consolidated balance sheet for the fiscal year ended on March 31, 2021. For thequarterly consolidated statements of income for the first half of the same fiscal year, cost of sales increased by 2,012 million
yen, selling, general and administrative expenses decreased by 2,009 million yen, operating loss and ordinary loss increased by
3 million yen, respectively, and profit before income taxes decreased by 3 million yen, profit and profit attributable to ownersof parent decreased by 2 million yen, respectively.
(Additional information)(Application of tax effect accounting related to the transition from a consolidated taxation system to a group tax sharing system)
Regarding items that have been transitioned to a group tax sharing system established under the “Act for Partial Amendment
to the Income Tax Act, etc.” (Act No. 8 of 2020) and those for which a revision of the non-consolidated taxation system has
been carried out pursuant to this transition, the Company and some of its consolidated subsidiaries in Japan has not applied theprovisions in Paragraph 44 of the “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, February 16,2018), in accordance with the treatment prescribed in Paragraph 3 of the “Practical Solution on the Treatment of Tax EffectAccounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System” (PITF No. 39, March
31, 2020) and the amounts of deferred tax assets and deferred tax liabilities for these items are based on taxation law as it was
before amendment.
(Quarterly consolidated statements of income)* Selling, general and administrative expenses
Major items and their amounts were as follows:

Distribution expenses

First half of previous fiscal year
(From April 1, 2020
to September 30, 2020)
6,562 million yen

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

3,236 million yen
488 million yen

3,1million yen
459 million yen

199 million yen
4 million yen

159 million yen(0) 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, 2020
to September 30, 2020)
7,894 million yen

First half of current fiscal year
(From April 1, 2021
to September 30, 2021)
8,604 million yen

7,894 million yen

8,604 million yen

Cash and cash equivalents―18―

(Shareholders' equity, etc.)
First half of the previous fiscal year (From April 1, 2020 to September 30, 2020)
1. Dividends paid
Resolution

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

Record date

Effective date

Source ofdividends

Ordinary General
Meeting of
Shareholders held on
June 26, 2020

Commonstock

889

March 31, 2020

June 29, 2020

Retainedearnings

35

2. Dividends whose record date falls in the first half ended September 30, 2020, but whose effective date comes after September 30,
2020
Not applicable.
First half of the current 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.
(Segment information, etc.)[Segment information]
First half of the previous fiscal year (From April 1, 2020 to September 30, 2020)
1. Disclosure of sales and profit (loss) for each reportable segment
Reportable segment
Processed
Food
Products
operations

Meat
Products
operations

Total

Other
(Note) 1

Total(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

Net sales
Sales to external customers

76,62Intersegment sales andtransfers－

Total
Segment income (loss)

35,825－

112,45184

112,53－

112,536

－

374

374

(374)

－

76,62

35,825

112,451458

112,91(374)

112,536(1,199

297

(901)

37

(864)

－

(864)

(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 42 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.

―19―

(Significant gain on bargain purchase)In the Processed Food Products operations segment, the Company recorded gain on bargain purchase of 997 million yen in thefirst half of the previous fiscal year due to the acquisition of shares of Toraku Foods Co., Ltd. in the second quarter ended September
30, 2020.

―20―

First half of the current 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
Processed
Food
Products
operations

Meat
Products
operations

Other(Note) 1

Total

Total

Net sales
Ham & Sausage Products

33,02

－

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

41,30

－

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

34,78334,783－34,783－34,783

Other

－

－

－

83

83

－

83

Revenues generated fromcontracts with customers

74,33

34,783

109,12083

109,204－

109,204

Sales to external customers

74,33

34,783

109,12083

109,204－

109,204

Intersegment sales andtransfers

－

－

－

373

373

(373)

－

34,783

109,120456

109,577(373)

109,204

308

68

33

101

－

101

Total
Segment income (loss)

74,33
(239)

(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 current fiscal year due to decrease in recoverable
value for real estate for rent and other not belonging to any segment.
3. Change in reportable segments, etc.
(Application of an accounting standard for revenue recognition, etc.)
As described in “Changes in accounting policies,” the Company began applying the Revenue Recognition Standard, etc. fromthe beginning of the first quarter of the current fiscal year and changed the accounting treatment in relation to revenue recognition.
The calculation method for the income/loss of reportable segments has been changed in the same manner accordingly.
Segment information for the first half of the previous fiscal year is presented after applying the new calculation method forincome/loss.
(Change in the method of recording distribution expenses)
As described in “Changes in accounting policies,” the Company changed the method of recording distribution expenses startingfrom the beginning of the first quarter of the current fiscal year. The calculation method for the income/loss of reportable segments
has been changed in the same manner accordingly.
Segment information for the first half of the previous fiscal year is presented after applying the new calculation method forincome/loss.

―21―

Second quarter of the previous fiscal year (From July 1, 2020 to September 30, 2020)
1. Disclosure of sales and profit (loss) for each reportable segment
Reportable segment
Processed
Food
Products
operations

Meat
Products
operations

Total

Other
(Note) 1

Total(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

Net sales
Sales to external customers

39,09Intersegment sales andtransfers－

Total
Segment income (loss)

18,005－39,09

18,005

(921)

203

57,09

45

57,141

－

57,14

－

193

193

(193)

－

57,09

239

57,335

(193)

57,14

(717)

22

(695)

－

(695)

(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 7 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.
(Significant gain on bargain purchase)In the Processed Food Products operations segment, the Company recorded gain on bargain purchase of 997 million yen in thesecond quarter of the previous fiscal year due to the acquisition of shares of Toraku Foods Co., Ltd. in the same period.

―22―Second quarter of the current 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
Reportable segment
Processed
Food
Products
operations

Meat
Products
operations

Total

Other
(Note) 1

Total(Millions of yen)Amountrecorded on
the quarterly
Adjustments consolidated
statement ofincome(Note) 2

Net sales
Ham & Sausage Products

16,95

－

16,95

－

16,95

－

16,958Precooked & Processed
Foods

21,11

－

21,11

－

21,11

－

21,117

Meat Products operations－

17,398

17,39

－

17,39

－

17,398

Other

－

－

－

45

45

－

45

Revenues generated fromcontracts with customers

38,07

17,398

55,47

45

55,52

－

55,520

Sales to external customers

38,07

17,398

55,47

45

55,52

－

55,520Intersegment sales andtransfers

－

－

194

194

(194)

－

17,398

55,47

240

55,71

(194)

55,520

130

(138)

18

－

(119)

Total
Segment income (loss)

38,07

－

(268)

(119)

(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 current fiscal year due to decrease inrecoverable value for real estate for rent and other not belonging to any segment.
3. Change in reportable segments, etc.
(Application of an accounting standard for revenue recognition, etc.)
As described in “Changes in accounting policies,” the Company began applying the Revenue Recognition Standard, etc. fromthe beginning of the first quarter of the current fiscal year and changed the accounting treatment in relation to revenue recognition.
The calculation method for the income/loss of reportable segments has been changed in the same manner accordingly.
Segment information for the second quarter of the previous fiscal year is presented after applying the new calculation method forincome/loss.
(Change in the method of recording distribution expenses)
As described in “Changes in accounting policies,” the Company changed the method of recording distribution expenses startingfrom the beginning of the first quarter of the current fiscal year. The calculation method for the income/loss of reportable segments
has been changed in the same manner accordingly.
Segment information for the second quarter of the previous fiscal year is presented after applying the new calculation method forincome/loss.
(Revenue recognition)
Information on the disaggregation of revenues generated from contracts with customers are presented in “[Note] Segment
information, etc.”―23―

(Per share information)
First half of fiscal year
The amounts of profit per share and the basis of calculation thereof are as follows:First half of previous fiscal year
Item
(From April 1, 2020
to September 30, 2020)
Profit per share

9.75 yenFirst half of current fiscal year
(From April 1, 2021
to September 30, 2021)
3.88 yen(Basis of calculation)
Profit attributable to owners of parent
247
98(Millions of yen)Amount not attributable to common shareholders－－(Millions of yen)
Profit attributable to owners of parent associated with
247
98
common stock (Millions of yen)
Weighted average number of common shares during
25,42025,367the period (Thousand shares)(Notes)1. Diluted profit per share is not stated because there is no dilutive security.
2. We have changed the accounting principle (method of recording distribution expenses) since the first quarter of the current
fiscal year. Accordingly, the related data for the first half of the previous fiscal year are stated as figures to which the new
method has been retrospectively applied.
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, 2020
to September 30, 2020)

Profit (loss) per share

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

18.33 yen

(3.16 yen)

465

(80)

－

－

465

(80)

(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 associatedwith common stock (Millions of yen)

Weighted average number of common shares during
25,41725,333the period (Thousand shares)(Notes)1. Diluted profit per share is not stated because there is no dilutive security.
2. We have changed the accounting principle (method of recording distribution expenses) since the first quarter of the current
fiscal year. Accordingly, the related data for the second quarter of the previous fiscal year are stated as figures to which the
new method has been retrospectively applied.

2. Other
Not applicable.

―24―

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

―25―Independent Auditors’ Review Report on Quarterly Consolidated Financial Statements
November 11, 2021
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 for thesecond quarter (from July 1, 2021 to September 30, 2021) and the first half (from April 1, 2021 to September 30, 2021) of the fiscal year
from April 1, 2021 to March 31, 2022, 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 and notes 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, 2021, 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 toprovide 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 quarterly consolidated financial statement in accordancewith standards for the preparation of quarterly consolidated financial statements generally accepted in Japan, and for designing andoperating such internal control as the management determines is necessary to enable the preparation and fair presentation of 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.

―26―

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 that should
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.

―27―

[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 12, 2021

[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)―28―

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 74th fiscal year (from July 1, 2021 to September 30, 2021) are appropriately presented inaccordance with the Financial Instruments and Exchange Act.

2. Special note
There is nothing to report.

―29―

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