Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Six Months Ended August 31, 2022
[Japanese GAAP]
October 13, 2022
Company name: S Foods Inc.
Stock exchange listing: Tokyo
Code number: 2292
URL: https://www.sfoods.co.jp
Representative: Shinnosuke Murakami
President and Representative Director
Contact: Yosuke Yuasa
Director Supervising Administration Group
Phone: 0798(43)1065
Scheduled date of filing quarterly securities report: October 14, 2022
Scheduled date of commencing dividend payments: October 31, 2022
Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended August 31, 2022 (March 01, 2022 to August 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%Six months ended
August 31, 2022
193,827
13.8
8,587
6.5
9,704
15.0
5,726
2.4
August 31, 2021
170,277
6.9
8,066
33.8
8,438
36.8
5,594
(10.5)(Note) Comprehensive income:Six months ended August 31, 2022:¥
8,908 million [30.0%]
Six months ended August 31, 2021:¥6,851 million [(1.5) %]Basic earnings
per share
Six months ended
August 31, 2022
August 31, 2021

Diluted earnings pershareYen

Yen

181.10176.98-(2) Consolidated Financial Position
Total assets
As ofAugust 31, 2022
February 28, 2022
(Reference) Equity:

Net assets

Million yen

Capital adequacy ratio

Million yen

202,198
181,518
As of August 31, 2022:
As of February 28, 2022:¥¥%

113,902106,157
106,876 million
99,256 million

52.9
54.7

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended February 28, 2022

-35.00-35.0070.00

Fiscal year ending February 28, 2023-39.00-39.0078.00

Fiscal year ending February 28, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

NoYear-endTotal

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023(March 01, 2022 to February 28, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share%

Million yen%

Million yen%

Yen

Full year
375,000
4.5
14,800 (15.1)(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

15,000No(16.7)

10,000(16.3)

316.31* Notes:(1) Changes in significant subsidiaries during the six months ended August 31, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:Exclusion:(Company name:No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
August 31, 2022:
32,267,721 shares
February 28, 2022:
32,267,721 shares2) Total number of treasury shares at the end of the period:
August 31, 2022:
646,556 shares
February 28, 2022:
652,801 shares
3) Average number of shares during the period:
Six months ended August 31, 2022:
Six months ended August 31, 2021:

31,617,296 shares
31,611,178 shares))
YesQuarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Million yen)
As of February 28,2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netLand
Other
Accumulated depreciation
Other, net
Accumulated impairment
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of August 31,2022

41,85932,14925,207
1,799
3,985
6,321
(38)
111,285

42,35940,22031,073
2,016
4,424
8,036
(49)
128,081

57,186(27,798)
29,387
15,29936,576(25,584)
10,991(3,515)52,16358,316(29,022)
29,294
15,041
42,272(26,749)
15,522(3,785)56,073

257
481
739

227
434
662

13,887
151
3,494
(202)
17,331
70,233
181,518

13,800
163
3,613
(196)
17,381
74,117202,198

(Million yen)
As of February 28,2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

As of August 31,2022

22,475
5,533
1,770
1,054
10,88041,71429,337
11,2483,424
1,114
12,00857,133450
28,779400
26,402

174

130

1,886
2,357
33,64775,361

1,901
2,329
31,162
88,296

4,298
18,73972,631(410)
95,258

4,298
18,754
77,250(406)
99,896

2,956

2,883

13
989
38
3,998
6,900
106,157
181,518

88
3,977
31
6,980
7,025
113,902202,198

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Million yen)
For the six months
ended August 31,2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from buildings
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Rent cost
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Compensation income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on store closings
Loss on temporary store closings
Loss on tax purpose reduction entry of non-current
assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the six months
ended August 31,2022

170,277
142,864
27,412
19,346
8,066

193,827
166,484
27,342
18,754
8,587

8
293
66

83
329
109

4

5

217
589

414
381
1,324

131
13
23
50
218
8,438

138
24
44
207
9,704

2
2
270
1
276

14210
2241851902167868039-50

1424
8,290
2,557
5,732
138
5,594

1239
9,689
3,764
5,925
199
5,726

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Million yen)
For the six months
ended August 31,2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive incomeComprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

For the six months
ended August 31,2022

5,732

5,925

481
19616
(1)

(70)
74
2,977
(7)

3

10

1,119
6,851

2,983
8,908

6,706

8,707

145

200

Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended August 31,2021

For the six months
ended August 31,2022

Cash flows from operating activities
Profit before income taxes

8,290

9,689

Depreciation

2,237

2,2031968

Amortization of goodwill

49

30

Increase (decrease) in provision for bonuses

23554

Decrease (increase) in retirement benefit asset

(13)

(14)

Increase (decrease) in retirement benefit liability

(7)

(1)

Interest and dividend income

(301)

(413)

Interest expenses

131

138

Loss (gain) on sale of non-current assets

(2)

(14)

Decrease (increase) in trade receivables(2,610)(7,604)

Decrease (increase) in inventories(7,317)(6,291)

Increase (decrease) in trade payables

4,129

6,785

Subsidy income

(270)

(210)

(1)

-Impairment lossesCompensation income
Increase (decrease) in accrued consumption taxes

(919)

51

Other, net(795)162

Subtotal

2,855

4,633

297

354

Interest and dividends received
Interest paid

(131)

(138)

Income taxes paid

(3,753)(1,430)Subsidies received

193

204

1-(536)

3,624

Proceeds from compensation
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits

10277

Purchase of property, plant and equipment(1,658)(5,712)

Proceeds from sale of property, plant and equipment

7610

(101)

(8)

Purchase of investment securities

(4)

(4)

Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Loan advances

20

5(513)-(666)(1,946)99

Subsidies received-

50

Other, net

82

9(2,814)(6,708)

1,049

5,594

Purchase of intangible assets

Proceeds from collection of loans receivable

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

200-Repayments of long-term borrowings(2,256)(2,356)

(50)

(50)

Redemption of bonds
Dividends paid

(1,010)(1,105)

Dividends paid to non-controlling interests

(75)

(75)

Other, net

(32)

(25)

(2,175)

1,981

442

1,879

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(5,083)776

Cash and cash equivalents at beginning of period

39,82941,321

Cash and cash equivalents at end of period

34,74542,098