Introduction

Future Vision andPath to Achieve It

Value Creation
Strategy

Sustainable
Management

Financial
Performance

Governance

Financial Performance

11-Year Financial and Non-Financial Summary

For more details, please refer to the link below.
https://www.morinaga.co.jp/company/english/ir/library/settlement.html

Financial information
Unit

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020*6

FY2021*6

FY2022*6

Net sales(Million yen)

152,885

164,603

177,929

181,868

199,479

205,022205,368

208,878

168,240

181,251

194,373

Operating income(Million yen)

2,695

3,858

5,939

11,456

17,612

19,751

20,217

21,23019,176

17,685

15,235

Ordinary income(Million yen)

2,973

4,446

6,530

12,062

18,325

20,422

20,767

21,95019,782

18,24715,757

Profit attributable to owners of parent(Million yen)

1,419

8,090

3,806

8,092

11,115

10,28912,816

10,824

13,416

27,773

10,059

Capital investment(Million yen)

13,01014,517

2,393

7,406

3,750

7,310

7,983

10,661

20,404

20,411

9,995

Depreciation(Million yen)

5,594

6,808

6,581

6,130

5,771

5,820

5,835

6,230

7,909

10,032

10,087

R&D expenses(Million yen)

2,329

1,984

2,005

2,152

2,210

2,205

2,194

2,240

2,217

2,686

2,892

Cash flow from operating activities(Million yen)

5,565

7,684

11,182

16,715

18,40017,78820,897

20,994

12,127

24,825(2,966)

Cash flow from investing activities(Million yen)

(5,681)(6,459)(3,022)(2,091)(29,736)

8,154(20,025)

16,993(19,862)

9,312(14,209)

Cash flow from financial activities(Million yen)

3,645

(5,764)(1,491)(2,311)(2,398)(17,906)(11,888)(4,375)(4,084)(5,943)(7,348)

Free cash flow*(Million yen)

(2,615)

625

8,159

14,223

15,663

13,943

15,871

7,988(7,735)34,318(17,080)

Total assets*2(Million yen)

141,154

144,441

151,310163,085

183,112

177,920

175,837

188,060

202,910214,300

205,226

Net assets(Million yen)

52,98162,594

69,39377,223

91,763

100,331

97,193

105,487

123,706

131,174

125,856(Million yen)

29,901

26,20026,764

26,446

26,282

11,265

10,666

10,00010,00010,00019,000Operating income to net sales ratio

(%)

1.8

2.3

3.3

6.3

8.8

9.6

9.8

10.2

11.4

9.8

7.8

Return on equity (ROE)

(%)

2.7

14.4

6.0

11.5

13.6

11.0

13.2

10.8

11.8

22.0

7.9

Accounting year1

End of fiscal year

Interest-bearing debt*

3

Financial indicators

Return on assets (ROA)*

2

Shareholders’ equity ratio*2
D/E ratio

(%)

2.2

3.1

4.4

7.7

10.6

11.3

11.7

12.1

10.1

8.7

7.5

(%)

37.2

41.5

43.8

45.7

48.7

55.0

54.8

55.7

60.5

60.7

60.7

(Times)

0.57

0.44

0.40

0.35

0.29

0.12

0.11

0.10

0.08

0.08

0.15

Book value per share (BPS)*4(Yen)

1,009.48

1,151.30

1,274.09

1,432.50

1,713.49

1,882.23

1,917.22

2,080.77

2,441.25

2,603.95

2,645.25

Earnings per share (EPS)*4

(Yen)

27.24

155.3773.11

155.47213.60197.76247.15215.18266.73552.59208.77

Dividend per share*

4

(Yen)

30

30

30

35

45

50

66

72

80

90

100

Dividend payout ratio

(%)

110.1

19.3

41.0

22.5

21.1

25.3

26.7

33.5

30.0

16.3

47.9

Dividend on equity ratio

(%)

3.0

2.8

2.5

2.6

2.9

2.8

3.5

3.6

3.5

3.6

3.8

Total shareholder return ratio*5

(%)

114.5

19.5

41.5

22.9

21.5

26.7

92.5

33.6

30.1

21.5

157.9

*1 Calculated excluding expenditures associated with payments into time deposits and proceeds from the reversal of time deposits.
*2 The Company applied Partial Amendments to the Accounting Standard for Tax Effect Accounting, etc., from FY2018. Figures for FY2014 to FY2017 were retroactively adjusted in line with this accounting standard.
*3 Interest-bearing liabilities are the sum of all liabilities on which interest is paid that are shown in the consolidated balance sheets, except for lease obligations.

Non-financial informationJapan
CO2 emissions*7
Overseas
Amount of water
resource consumption*8,*13
Amount of waste emissions*9

Unit
Scope 1*

13

(Thousand t-CO2)

Scope 2*13

(Thousand t-CO2)

Scope 1(Thousand t-CO2)

Scope 2(Thousand t-CO2)

FY2018FY2019FY2020*6

FY2021*6

FY2022*6

24.0

20.6

21.4

22.3

22.3

50.1

46.9

47.5

53.4

54.0

2.8

3.4

3.3

3.7

4.0

6.6

7.2

6.3

6.8

6.8

1,529.9

1,550.4

1,591.3

1,602.1

1,599.0

1,706.1

FY2012FY2013

FY2014FY2015FY2016FY2017

62.5

63.9

58.0

55.3

57.0

56.7

−

4.7

9.0

14.3

18.4

15.1

1,689.7

1,556.0

1,487.9

1,482.5

1,548.7

Japan(Thousand tons)

Overseas(Thousand tons)

−

130.6

215.3

182.6

246.6

208.9

158.7

148.0

169.7

179.4

203.5

Japan

(Thousand tons)

10.7

11.4

10.1

9.8

10.0

9.8

9.7

9.6

9.4

10.8

9.6

(Thousand tons)

−

0.3

1.1

1.2

1.3

0.9

0.5

0.6

0.6

0.7

0.8

Cacao beans

(%)

9

34

Palm oil

(%)

2

9

Paper

(%)

98.0

99.9

Overseas

Procurement ratio ofsustainable raw materials*10

Japan

Number of employees*11

Consolidated

Ratio of female managers*12 Morinaga & Co., Ltd.

(People)2,573(2,084)

2,927(2,323)2,978(2,613)

(%)

4.5

4.2

4.4

*7 Figures for Japan for FY2018 and later represent the Group consolidated basis. Figures for overseas for FY2019 and later represent the Group consolidated basis. Figures prior to this are for production sites bothin Japan and overseas. The conversion coefficient at the time of CO2 calculation for FY2017 and prior uses the fixed coefficient of 0.378 kg-CO2/kWh established internally in 2003.
*8 Figures prior to FY2017 are for production sites both in Japan and overseas. Figures for Japan for FY2018 and later represent the Group consolidated basis.
*9 Figures for production sites both in Japan and overseas.
*10 Paper covers only product packaging.

78*4 The Company implemented a five-for-one share reverse stock split on October 1, 2016. Figures calculated assuming that this reverse stock split was carried out at the beginning of FY2012.
*5 The total amount of dividends for which the record date falls in the current fiscal year and the total amount of treasury shares acquired in the current fiscal year divided by net income attributable to owners of the parent.
*6 The Company applied the “Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020),” and other regulations, from the beginning of FY2021. The figures for FY2020 are from after
retroactive application of the said accounting standard.

3,056(2,330)3,256(2,186)

3,169(1,950)2,717(1,712)

2,711(1,687)2,825(1,597)2,937(1,658)3,076(1,673)

4.2

4.6

5.2

6.7

7.7

8.3

9.4

10.0

*11 Data as of March 31 each fiscal year. Number of employees represents the number of people working for the Company (excluding forwarded employees from the Group to outside the Group but including
forwarded employees from outside the Group to the Group). For temporary employees, the number in parentheses is excluded from the above number and shows the average number of temporary employees
per year. Temporary employees include part-timers and contract workers but exclude temporary employees from placement agencies.
*12 Figures are non-consolidated for Morinaga & Co., Ltd., as of April 1 of each fiscal year.
*13 Figures for FY2020 CO2 emissions for the Group in Japan on a consolidated basis (Scope 1 + 2) and water usage amount have received third-party assurance from LRQA.

Morinaga Group INTEGRATED REPORT 2023

79

Introduction

Future Vision andPath to Achieve It

Value Creation
Strategy

Financial Summary

Sustainable
Management

Financial
Performance

Governance

For more details, please refer to the link below.
https://www.morinaga.co.jp/company/english/ir/library/settlement.html(1) Consolidated Balance Sheets
Million yen

FY2021(March 31, 2022)

FY2022(March 31, 2023)

Assets

FY2021(March 31, 2022)

FY2022(March 31, 2023)

22,798

Liabilities

Current assets

Current liabilities

Cash and deposits

56,65236,362

Notes and accounts payable–trade20,392

Notes and accounts receivable–trade

22,31323,712Current portion of long-term loans

10,000–

Merchandise and finished goods

13,645

16,330

Lease obligations

367

490

Work in process

374

498

Accounts payable–other

10,538

10,156

Raw materials and supplies

9,736

14,761

Income taxes payable

9,974

360

Income taxes receivable

157

3,328

Refund liabilities

3,611

3,916

9,236

6,421

Allowance for bonuses

2,697

2,696

(48)

(43)

453

–

112,067

101,371

Other

12,112

10,879Total current liabilities

70,14751,297

Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Asset retirement obligations

Long-term liabilities

Buildings and structures

62,29562,990Bonds payable

–

9,000

Accumulated depreciation(32,283)(32,940)

Long-term loans–

10,000

Buildings and structures–net

30,01130,050Machinery, equipment and vehicles

98,116

100,894

Lease obligations

616

950

Accumulated depreciation(68,740)(72,269)–333

Machinery, equipment and vehicles–net

29,37528,624Tools, furniture and fixtures

5,236

5,281

Accumulated depreciation(4,015)(4,112)Tools, furniture and fixtures–net

1,221

1,168

Land

21,31820,734

Lease assets

1,851

2,355

Accumulated depreciation(966)(1,051)

Lease assets–net

884

1,304

Construction in progress

2,241

4,373

Total property, plant and equipment

85,05386,25698–

Intangible assets
Goodwill
Software
Other
Total intangible assets

Deferred tax liabilities
Provision for directors’ stock benefits

82

88

Provision for environmental measures

274

273

Net defined benefit liability

8,231

3,640

Asset retirement obligations

–

66

3,642

3,633

Deposits received
Other

131

86

Total long-term liabilities

12,97828,072

Total liabilities

83,126

79,370Common stock

18,612

18,612

Capital surplus

17,292

17,186

97,886

83,396

Net assets
Shareholders’ equity–

192

Retained earnings

211

647

Treasury stock(12,717)(3,713)839

Total shareholders’ equity

121,074

115,482

5,396

5,201

309

Accumulated other comprehensive income

Investments and other assets
Investment securities

10,447

10,167

Valuation difference on available-for-sale securities

Net defined benefit asset

4,232

4,605

Deferred gains or losses on hedges

(1)

3

1,304

2,263

Deferred tax assets

1,191

1,102

Foreign currency translation adjustments

Other

1,034

919

Remeasurements of defined benefit plans

2,261

1,615

(36)

(35)

Total accumulated other comprehensive income

8,960

9,082

Allowance for doubtful accounts

80

Million yen

Total investments and other assets

16,86916,759Non-controlling interests

1,139

1,290

Total noncurrent assets

102,233

103,855

Total net assets

131,174

125,856

Total assets

214,300

205,226

Total liabilities and net assets

214,300

205,226

Morinaga Group INTEGRATED REPORT 2023

81

Introduction

Future Vision andPath to Achieve It

Value Creation
Strategy

Sustainable
Management

Financial
Performance

Governance

Financial Summary

For more details, please refer to the link below.
https://www.morinaga.co.jp/company/english/ir/library/settlement.html(2) C onsolidated Statements of Operations and Consolidated Statements ofComprehensive Income(Consolidated Statements of Operations)

Million yen(Consolidated Statements of Comprehensive Income)Million yen

FY2021(April 1, 2021–
March 31, 2022)

FY2022(April 1, 2022–
March 31, 2023)

Net sales

181,251

194,373

Net income

Cost of sales

105,425

117,721

Other comprehensive income

Gross profit

75,82676,651

Valuation difference on available-for-sale securities

Selling, general and administrative expenses

58,14061,415

Deferred gains or losses on hedges

(23)

5

Operating income

17,685

15,235

Foreign currency translation adjustments

970

1,006

Remeasurements of defined benefit plans, net of tax

(535)

(629)

Interest income

21

19

Share of other comprehensive income of associates accounted for using equity method(0)5Dividends income

543

270

Total other comprehensive income(14,921)193

Net comprehensive income

13,037

10,484

12,684

10,182353

302

Non-operating income

Equity in earnings of affiliates–

4

Subsidy income–

263(Breakdown)

Other

228

303

Comprehensive income attributable to owners of parent

Total non-operating income

793

861

Comprehensive income attributable to non-controlling interests

Interest expenses

34

56

Equity in losses of affiliates

25–

Bond issuance costs

–

51

112

85

FY2021(April 1, 2021–
March 31, 2022)

FY2022(April 1, 2022–
March 31, 2023)

27,95910,291(15,333)(195)

Non-operating expenses

Depreciation
Commission for purchase of treasury stock

0

76

Other

57

68

Total non-operating expenses
Ordinary income

231

339

18,24715,757Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Insurance income

10

7

21,952

274

–

100

21,963382

Loss on sales and retirement of noncurrent assets

700

1,535

Impairment loss

99

649

IT system failure response expenses

193

–

1

71

Total extraordinary loss

994

2,256

Income before income taxes

39,216

13,884

Income taxes—current

11,2792,964

Income taxes—deferred

(22)

628

Total extraordinary income
Extraordinary loss

Other

Total income taxes

11,257

3,593

Net income

27,95910,291

Profit attributable to non-controlling interests
Profit attributable to owners of parent

82

186

231

27,773

10,059Morinaga Group INTEGRATED REPORT 2023

83

Introduction

Future Vision andPath to Achieve It

Value Creation
Strategy

Sustainable
Management

Financial
Performance

Governance

Financial Summary

For more details, please refer to the link below.
https://www.morinaga.co.jp/company/english/ir/library/settlement.html(3) C onsolidated Statements of Changes in Net Assets
FY2021 (April 1, 2021–March 31, 2022)

FY2022 (April 1, 2022–March 31, 2023)
Million yen

Million yen

Shareholders’ equity

Common stock
Balance at beginning of
the fiscal year

Capital surplus

18,612

17,281Retained earnings
74,139

Shareholders’ equity

Treasury stock

Total shareholders’equity(11,291)

Common stock
Balance at beginning of
the fiscal year

98,742

Changes of items during the period

18,612

17,292Retained earnings
97,886

Treasury stock

Total shareholders’equity(12,717)

121,074

Changes of items during the period

Dividends from surplus(4,025)(4,025)

Dividends from surplus(4,497)(4,497)

Profit attributable to owners of parent

27,773

27,773

Profit attributable to owners of parent

10,05910,059

(1,467)(1,467)Purchase of treasury stock

41

51

Disposal of treasury stock–

Cancellation of treasury stock

Purchase of treasury stock

10

Disposal of treasury stock
Cancellation of treasury stock
Net changes of items other thanshareholders’ equity

Balance at end of the fiscal year

(11,173)

20

20

0
(105)

(20,052)

20,157––

10

23,747(1,425)22,331

Total changes of items during
the period

–

(105)

(14,490)

9,004(5,591)

18,612

17,292

97,886(12,717)

121,074

Balance at end of the fiscal year

18,612

17,186

83,396(3,713)

115,482

Accumulated other comprehensive income

Accumulated other comprehensive income

Total
Valuation
RemeasureForeign
accumulated
Deferred gains
difference onments ofcurrency
otheror losses onavailable-fortranslation defined benefit
comprehensive
hedgesplans
sale securities
adjustments
incomeBalance at beginning of the fiscal year

(11,173)

Net changes of items other thanshareholders’ equity

Total changes of items during
the period

20,729

23

493

2,803

24,049Noncontrollinginterests

Total
net assets

915

123,706

Changes of items during the period

Total
Valuation
RemeasureForeign
accumulated
Deferred gains
difference onments ofcurrency
otheror losses onavailable-fortranslation defined benefit
comprehensive
hedgesplans
sale securities
adjustments
incomeBalance at beginning of the fiscal year

5,396

(1)

1,304

2,261

8,960

Noncontrollinginterests

Total
net assets

1,139

131,174

Changes of items during the period

Dividends from surplus(4,025)

Dividends from surplus(4,497)

Profit attributable to owners of parent

27,773

Profit attributable to owners of parent

10,059Purchase of treasury stock(1,467)Purchase of treasury stock(11,173)

Disposal of treasury stock51

Disposal of treasury stock

20

Cancellation of treasury stock–

Cancellation of treasury stock–

Net changes of items other thanshareholders’ equity

84

Capital surplus(15,333)

(25)

811

(541)

(15,088)224(14,864)

Total changes of items during
the period(15,333)

(25)

811

(541)

(15,088)

224

7,467

Balance at end of the fiscal year

5,396

(1)

1,304

2,261

8,960

1,139

131,174

Net changes of items other thanshareholders’ equity

(195)

4

958

(645)

122

150

273

Total changes of items during
the period

(195)

4

958

(645)

122

150

(5,318)

Balance at end of the fiscal year

5,201

3

2,263

1,615

9,082

1,290

125,856

Morinaga Group INTEGRATED REPORT 2023

85

Introduction

Future Vision andPath to Achieve It

Value Creation
Strategy

Sustainable
Management

Financial
Performance

Governance

Financial Summary

For more details, please refer to the link below.
https://www.morinaga.co.jp/company/english/ir/library/settlement.html(4) Consolidated Statements of Cash Flows
Million yen

FY2021(April 1, 2021–
March 31, 2022)

FY2021(April 1, 2021–
March 31, 2022)

FY2022(April 1, 2022–
March 31, 2023)

Operating activities

FY2022(April 1, 2022–
March 31, 2023)

Investing activities

Income before income taxes

39,216

13,884

Payments into time deposits

Depreciation

10,032

10,087Purchase of property, plant and equipment

Impairment loss

99

649

Proceeds from sales of property, plant and equipment

369

176

Amortization of goodwill

98

98

Purchase of intangible assets

(15)

(282)

Purchase of investment securities

Increase (decrease) in provision for directors’ stock benefits

24

5

Increase (decrease) in net defined benefit liability

143(4,760)

Proceeds from sales of investment securities(Increase) decrease in net defined benefit asset(159)(1,154)

Increase (decrease) in allowance for bonuses

80

Increase (decrease) in allowance for doubtful accounts

1

Increase (decrease) in provision for environmental measures

(180)

(95)

(15,307)(13,304)(2)(2)

24,784

285

Other

(336)

(987)

(13)

Net cash provided by (used in) investing activities

9,312(14,209)(6)

Financing activities

(5)

(0)

Proceeds from long-term loans–

10,000

(564)

(290)

Repayments of long-term loans–(10,000)

Subsidy income

–

(263)

Proceeds from issuance of bonds

Interest expenses

34

56

Purchase of treasury stock

Equity in losses (earnings) of affiliates

25

(4)

Proceeds from sales of treasury stock(21,951)(274)

Interest and dividends income

Loss (gain) on sale of investment securities

Cash dividends paid
Dividends paid to non-controlling interests(Gain) loss on sales of noncurrent assets

89

58

Loss on retirement of noncurrent assets

599

1,468

Other

–

(100)

Net cash provided by (used in) financing activities(Increase) decrease in notes and accounts receivable–trade(2,127)(1,128)

Effect of exchange rate change on cash and cash equivalents(Increase) decrease in inventories(3,752)(7,138)Insurance income

Increase (decrease) in notes and accounts payable–trade

2,039

8,948
(11,250)51

20(4,025)(4,497)

(128)

(151)

(373)

(417)
(7,348)384

454

Net increase (decrease) in cash and cash equivalents

28,578(24,068)

2,171

Cash and cash equivalents at beginning of period

31,56860,146

Cash and cash equivalents at end of period

60,14636,077

Other

2,773

(1,387)

26,697

11,958Interest and dividends income received

561

288

Interest expenses paid

(33)

(34)

(2,400)(15,290)

Proceeds from subsidy income–

11

Proceeds from insurance income–

100

24,825(2,966)

Net cash provided by (used in) operating activities–(1,467)(5,943)

Subtotal

Income taxes (paid) refund

86

Million yen

Morinaga Group INTEGRATED REPORT 2023

87

Future Vision andPath to Achieve It

Introduction

Value Creation
Strategy

Sustainable
Management

Financial
Performance

GovernanceCorporate Profile/Stock Information/
Third-Party Assurance

Business Offices
and AffiliatedCompanies(as of March 31, 2023)

Stock and
Shareholder
Information

Third-Party
Assurance

Scope of assurance

Assurance of Executive
Officer in Charge

Domestic Group Companies

Overseas Group Companies

Head Office
East Japan Branch OfficeWest Japan Branch Office
Tsurumi Factory
Chukyo FactoryOyama Factory
Mishima Factory
R&D Center●

Food Manufacturing
Morinaga Angel Dessert Co., Ltd.
Morinaga Dessert Co., Ltd.
Takasaki Morinaga Co., Ltd.
Aunt Stella Inc.
Morinaga Market Development Co., Ltd.
● Food Merchandise
Morinaga Shoji Co., Ltd.
● Real Estate and Services
Morinaga Takataki Country Co., Ltd.
● OtherMorinaga Finance Co., Ltd.
Morinaga Institute of Biological Science, Inc.
Morinaga Business Partner Co., Ltd.
SEE THE SUN Inc. ★

Taiwan Morinaga Co., Ltd. (Taipei, Taiwan)
Shanghai Morinaga Co., Ltd. (Shanghai, China)
Morinaga (Zhejiang) Co., Ltd. (Zhejiang, China)
Morinaga America, Inc. (California, USA)
Morinaga America Foods, Inc. (North Carolina,
USA)
Morinaga Asia Pacific Co., Ltd. (Bangkok,
Thailand)Morinaga Bioscience (Thailand) Co., Ltd.
(Bangkok, Thailand) ★
★Non-consolidated companies accounted forusing the equity method(as of March 31, 2023)

Distribution of Shares by Owner

Shareholder Name

The Master Trust Bank of Japan, Ltd. (Trust account)
Morinaga Business Partner Shareholding Association
Custody Bank of Japan, Ltd. (Trust account)
MUFG Bank, Ltd.
Meiji Yasuda Life Insurance Company
NORTHERN TRUST CO. (AVFC) RE SILCHESTERINTERNATIONAL INVESTORS INTERNATIONALVALUE EQUITY TRUSTSTATE STREET BANK AND TRUST COMPANY
505103
JP MORGAN CHASE BANK 385632
SSBTC CLIENT OMNIBUS ACCOUNT
Tokio Marine & Nichido Fire Insurance Co., Ltd.

Number of
Shares Held(Thousand shares)

Ratio of Voting
Rights (%)

5,351
3,356
2,078
1,704
1,121

11.3
7.1
4.4
3.6
2.3

1,042

2.2

952

2.0

886
799
696

1.8
1.6
1.4

Machiko Miyai
Director, Managing Executive Officer
Responsible for Sustainable Management
Division

Fiscal Year: April 1 to March 31 of the following year
Total Number of Shares Authorized to Be Issued: 200,000,000
Total Number of Shares Issued: 48,139,769
Number of Shareholders: 26,594

Status of Major Shareholders*

TreasurysharesFinancial
institutions

2.1%

27.9%

Individuals,
other

25.0%

Foreign-owned
corporations

30.9%

Other
corporations

Securities
companies

12.5%

1.6%

*The Company holds 1,015,263 shares of treasury stock but is excluded from the list of major shareholders above. The holding ratio is calculated
after excluding treasury stock.

CO2

CO2 emissions
reduction

Amount of water
resource usage

p. 60

p. 61

For more detailed information, please refer to the Third-Party Assurance Statement published in the
ESG Data section of our corporate website.
▶ https://www.morinaga.co.jp/company/english/sustainability/data/pdf/3rd-e_2023.pdf

Main Offices

Stock Exchange Listing: TSE Prime Market
Industry: Food products
Securities Code: 2201
Share Unit Number: 100 shares

The Morinaga Group has received assurance from LRQA Limited for the following information appearing in this report toenhance the reliability and accuracy of the information contained in the Morinaga Group Integrated Report 2023.

Message on Publication of Morinaga Group Integrated Report 2023
This year marks the third time that the Morinaga Group has published an integrated report following the firstone in FY2021. The objective of our integrated report is to deepen the understanding of stakeholders about
our efforts to enhance corporate value over the medium to long term.
The Group, which launched its 2030 Business Plan in FY2021, is promoting corporate activities with thevision of changing into a wellness company. In this report, we have included value co-creation stories fromour core “in-” business as a special feature. Also, as another special feature, we have included a roundtablediscussion by employees as they are important stakeholders. Both special features convey our initiatives tobecome a wellness company in a clear and concise manner. We hope this content will help our stakeholders
to better understand the Group.
This report is produced by the Sustainability Management Division and the Integrated Report Task Team,
which consists of members from several related departments. As the Director and Managing Executive Officer
responsible for this report, I declare the legitimacy of the preparation process and the accuracy of the content.
We will continue to value dialogue with stakeholders and enhance the content of disclosure andcommunication. I would appreciate it if you would share your frank and honest opinions of this integrated reportwith us.

Editing Policy
The Morinaga Group launched a new long-termbusiness plan in FY2021 called the 2030 Business
Plan, aiming to continuously enhance corporate
value based on the new corporate philosophy. This
integrated report is designed with the goals ofdisseminating and promoting understanding ofour vision for the future through the Group’s new
corporate philosophy as well as our value creation
strategy aimed at fruition of this philosophy over the short, medium, andlong term to audiences inside and outside Japan. We hope this report will
deepen our dialogue and mutual understanding with shareholders anddefine our path toward value creation. Referencing the International
Integrated Reporting Framework and Guidance for Collaborative Value
Creation, this report aims to concisely convey material issues in achieving
its new corporate philosophy from both financial and non-financial aspects,
as well as initiatives to address these issues.
For more detailed information, please refer to our corporate website*.

Information Disclosures System
Value Creation Story

I nt egra te d Re port

Securities Report
Financial results● Financial results briefing
materials●

ESG Data Book●●

Sustainability website●●

Corporate Governance
Report●Investor relations website

Financial(as of March 31, 2023)

Company Name: MORINAGA & CO., LTD.
Representative: Eijiro Ota, Representative Director, President
Headquarters: 5-33-1 Shiba, Minato-ku, Tokyo 108-8403, Japan
Establishment: August 15, 1899 Founded as Morinaga’s Western Confectionery Shop
Incorporation: February 23, 1910
Capital: 18,612 million yen
Business Activities: Morinaga’s main business activities are the manufacture, purchase, and sale ofconfectioneries (e.g., caramel, biscuits, chocolate), foods (e.g., cocoa, cake mix), frozen
desserts (e.g., ice cream), and health products (e.g., jelly drinks)
Sales: Consolidated 194,373 million yen Non-consolidated 161,284 million yen
Number of Employees: Consolidated 3,076 Non-consolidated 1,472 (average age: 43.2 years)

Non-Financial

Corporate
ProfileCompleteness

Morinaga Group Corporate Profile ▶ https://www.morinaga.co.jp/company/english/▶Reference guidelines“International Integrated Reporting Framework” of the International Integrated Reporting Council (IIRC)“Guidance for Collaborative Value Creation” of the Ministry of Economy, Trade, and Industry▶Period covered by the Report
FY2022 (April 1, 2022, through March 31, 2023)
Information outside of this period might also be reported in case it is appropriate to illustrate past information or recent case studies.

External
Recognition
https://www.msci.com/our-solutions/esg-investing▶Reporting boundary
This report is relevant to the Morinaga Group*. However, if the information for the entire Group is not fully available, the scope of coverage isstated in the report.
*In principle, Morinaga & Co., Ltd., and its consolidated subsidiaries (as of March 31, 2023) are referred to as the Morinaga Group or the Group.

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Morinaga Group INTEGRATED REPORT 2023

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