(Tanslated)

August 03, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 2023 (Q1 FY2023)(Japanese Accounting Standards)
Company name:
Stock exchange listing:Stock code:
URL:
Representative:
Contact:

Itoham Yonekyu Holdings Inc.
Tokyo Stock Exchange2296

https://www.itoham-yonekyu-holdings.com

Isao Miyashita, President and Chief Executive Officer
Masaru Kato, General Manager, Public &Investor Relations OfficeTel. +81-3-5723-6889
August 10, 2023
Scheduled date for filing of securities report:
Scheduled date of commencement of dividend payment: －Supplementary documents for financial results:
Yes
Quarterly results briefing:
None(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023–June 30, 2023)(1) Consolidated Results of Operations(% figures show year-on-year change)
Profit attributable toowners of parent
Million Yen% Million Yen% Million Yen% Million Yen%
227,558
5,311 (25.3)
5,600 (27.2)
3,357 (34.5)
7.2
212,325
7,114
7,698
5,129 (13.2)
4.8(5.8)(8.6)
5,592 million Yen
Three months ended June 30, 2023
8,265 million Yen
Three months ended June 30, 2022
ProfitDiluted profit
per shareper shareYen
Yen
11.79
11.79
17.60
17.59
Net sales

Three months ended
June 30, 2023
June 30, 2022
(Note) Comprehensive income:Three months ended
June 30, 2023
June 30, 2022

Operating profit

Ordinary profit(32.3) %26.0 %(2) Consolidated financial position

As of June 30, 2023
As of March 31, 2023
(Reference) Shareholders’ equity:

Total assets
Net assets
Million Yen
Million Yen
464,199
267,986
436,763
269,261
As of June 30, 2023
As of March 31, 2023

Equity ratio%
57.6
61.5
267,347 million Yen
268,608 million Yen

2. Dividends
Dividend per shareFirstquarter-end

Secondquarter-end

For the fiscal year ended
Yen
March 31, 2023－
March 31, 2024
For the fiscal year ending
March 31, 2024
(Forecast)(Note) Changes to most recent dividend forecast : None

Third
quarter-end

Fiscalyear-end

Total

Yen
0.00

Yen－

Yen
24.00

Yen
24.00

0.00

－25.0025.00(Note) As the effective date on October 1 2023, we will have consolidation of shares (combining 5 shares of common stock into 1 share).
In regard to above dividend per share figure for the fiscal year ending March 31, 2024 (Forecast), it does not consider the consolidation of shares. In case of
considering the consolidation of shares, the company plans to issue a year-end dividend of ￥125.00 per share.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)
Net Sales

Operating profitMillion Yen% Million Yen%
455,000
9,200 (39.2)
Second quarter-end1.6(Cumulative)
930,000
23,000
Full year
0.80.0(Note) Changes to most recent financial results forecast : None(% figures show year-on-year change)
Profit attributable toProfit per shareowners of parent
Million Yen% Million Yen%
Yen
10,000 (38.1)
6,500 (40.4)
22.83
Ordinary profit

25,000(4.0)

15,000(11.6)

52.68(Note) As the effective date on October 1 2023, we will have consolidation of shares (combining 5 shares of common stock into 1 share).
In regard to above Profit per share figure, it does not consider the consolidation of shares. In case of considering the consolidation of shares, and full year profit per
share is ￥263.41 per share.

(Tanslated)* Notes(1) Changes in significant subsidiaries during the term (changes in specific subsidiaries accompanied by a change in thescope of consolidation):
None
(2)

Changes in accounting policies, changes of accounting estimates and restatement(i)
Changes in accounting policies due to amendments to accounting standards:(ii) Other Changes in accounting policies:(iii) Changes in accounting estimates:(iv) Restatement:

None
None
None
None(3) Numbers of shares outstanding (common stock)(i)
Numbers of issued shares at end of period:
287,355,059 shares
As of June 30, 2023 :
287,355,059 shares
As of March 31, 2022 :(ii) Numbers of treasury shares at end of period:
2,632,939 shares
As of June 30, 2023 :2,632,763 shares
As of March 31, 2022 :(iii) Average number of shares outstanding during period:
284,722,187 shares
As of June 30, 2023 :
291,513,184 shares
As of June 30, 2022 :* This Summary of Consolidated Financial Results is outside the scope of the external audit.
* Explanation for using the forecasted information and the other special notes(Notes concerning forward-looking statements, etc.)
This summary financial report contains forward-looking statements and forecasts are made based on information available to thecompany at the time of preparation and certain assumption deemed to reasonable and actual result may significantly due tovarious factors.
For assumptions used for earnings forecasts and notes on the use of earnings forecasts, please refer to “(3) Future outlook”
under “1. Overview of Operations etc.” on page “3”.
(Access to Supplementary Explanations)
Explanatory materials for quarterly financial results will be published on TD-net for viewing in Japan and on our website.

(Translated)

Itoham Yonekyu Holdings Inc.

Contents

1. Overview of Operating Results and Financial Position ………………………………………………………………………………………………………
2(1) Overview of operating results ………………………………………………………………………………………………………………………
2(2) Overview of financial positions ………………………………………………………………………………………………………………………
3(3) Outlook …………………………………………………………………………………………………………………………………………………
3

2. Consolidated Financial Statements and Key Notes …………………………………………………………………………………………………………
4(1) Consolidated balance sheets ………………………………………………………………………………………………………………………………
4(2) Consolidated statements of income and comprehensive income …………………………………………………………………………………………
6(3) Notes on the consolidated financial statements …………………………………………………………………………………………………………
8(Notes on going concern assumptions) ……………………………………………………………………………………………………………………
8(Notes in the case of significant changes in shareholders' equity) ………………………………………………………………………………………
8(Segment information) ……………………………………………………………………………………………………………………………………
81

(Translated)

Itoham Yonekyu Holdings Inc.

1. Overview of Operating Results and Financial Position(1) Overview of operating results〇Domestic economic situation
The Japanese economic activities show slow recovery trend and increase in consumption partly, since COVID-19 change toCategory 5. On the other hand, rising resource prices and trends of financials/ foreign exchange markets affect domestic economy
and prices as a background of global uncertainties.

〇Our industry situation (Meat Processing industry)
The business environment remained harsh due to rising raw material and energy prices on top of persistently high packaging andlogistics costs along with weakening yen. Besides, the Group should respond to consumer needs and values that are rapidlychanging and diversifying, such as shift in consumer behavior, accelerated digitalization, and growing interest in sustainability.

〇Our operating results and overview◇Consolidated operating results
Net sales

Operating profit

Million Yen%

Million Yen%

227,558

7.2

5,311(25.3)(% figures show year-on-year change)
Profit attributable toOrdinary profit
owners of parent
Million Yen%
Million Yen%

5,600(27.2)

3,357(34.5)

We implement the following measures based on the four priority policies and financial strategies of the Medium-Term
Management Plan 2023.
Priority policies

Main measures

Strengthen management
base

Strategic-based reorganization , Promotion of digital strategy

Strengthen earnings baseReorganization of production and logistics bases, Enhancement of WAGYU exports

Initiatives for newbusinesses and markets

Strengthen Frozen foods, Expanding rage of Non-meat products, Strengthening Healthcare
business

Initiatives forsustainability

Identification of Materiality, Setting of KPIs, and Promotion of initiatives achievement

In terms of financial strategy, we aim to enhance return on invested capital (ROIC) and increase dividends steadily around the payout
ratio 40% to maximize shareholder value, by carrying out shareholder return policies while ensuring financial soundness and capitalefficiency.
Then we have set 2 billion yen limit for the acquisition of treasury stock for this fiscal year.

(% figures show year-on-year change)◇Operating results by reportable segment
Net Sales
Ordinary profit
Million Yen%
Million Yen%
93,852
1,598
Processed Food Division
5.6(38.3)
Meat Division

133,702

4,332

8.3

(20.7)<Processed Food Division>
・ Regarding Hams and Sausages, net sales increased driven by TV commercials and consumer campaigns to expand sales of the main
products for consumer products such as “The Grand Alt Bayern”, “Asano Fresh Series”, and “Gotenba Kogen Arabiki Pork”, on top ofincreased sales of business-use products such as roast beef.
・ Regarding Cooked foods, net sales increased driven by expanded product range to accommodate more diversified consumer needs such as
pizza products of “La Pizza” and “Pizza Garden”, “Onikuyasan-no-Sozai Series”, and soy-meat products of “Marude Oniku! Series”, on
top of increased sales of business-use products for restaurants.
・ Net sales of the Processed food division increased, but ordinary profit decreased, because the price revisions were unable to cover theincrease in costs due to rising raw material prices and utility costs.
<Meat Division>・ In domestic business, net sales increased driven by recovering sales to food service business and higher chicken prices as background ofrecovering economic activities. The profits increased as a result of profit management linked to production and sales, despite the impactof high compound feed prices and distribution costs.
・ In overseas business, profits decreased due to dropping the global beef demand comparison with previous year, and ANZCO Foods
decreased the sales of beef products also.
・ Net sales of Meat Division increased, but ordinary profit declined due to the impact of the decrease in overseas business profit.

2

(Translated)

Itoham Yonekyu Holdings Inc.

(2) Overview of financial positions(Assets, liabilities and net assets)
・ Total assets was 464,199 million yen, an increase of 27,436 million yen from the end of the previous consolidated fiscal year.
Increase factors: Increase in Inventories, Accounts receivable-trade, and Non-current assets
・ Liabilities was 196,213 million yen, an increase of 28,711 million yen from the end of the previous consolidated fiscal year.
Increase factors: Increase in Accounts payable - trade, and Short-term borrowings
・ Net assets was 267,986 million yen, an decrease of 1,275 million yen from the end of the previous consolidated fiscal year.
Decrease factors: Decrease in Retained earnings due to Dividends paid(3) Outlook
There are no changes to the consolidated results forecasts for the first half and the full year of the fiscal year ending March 31, 2024 thatwere announced on May 9, 2023.

3

(Tranlated)

Itoham Yonekyu Holdings Inc.

Consolidated Financial Statements and Key Notes(1) Consolidated balance sheets(Million Yen)
As of March 31, 2023
ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, netTools, furniture & fixtures, net
Land
Leased assets, net
Others, net
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
Investments and other assets
Total non-current assets
Total Assets

4

As of June 30, 2023

22,736
95,32397,801
2,020
22,92015,681(20)
256,463

23,974
98,280110,0282,060
29,113
17,987(5)281,44036,935
29,091
1,454
26,368
2,797
4,825
101,472

37,446
28,772
1,464
26,4102,684
5,417
102,196

18,286
8,555
26,842

17,884
8,976
26,86130,302
15,3076,462(88)
51,984
180,299
436,763

31,654
15,6396,576(169)
53,701
182,759
464,199

(Tranlated)

Itoham Yonekyu Holdings Inc.

(Million Yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of Long-term borrowings
Income taxes payableProvision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
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
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of June 30, 2023

66,978
1,991
32,062
10,126
5,024
6,163
161
329
30,103
152,941

81,235
1,748
43,266
10,125
517
1,740
40
－
41,256
179,930

446
1,653
1,469
10,991
14,560167,501

415
1,674
1,471
12,72016,282
196,21330,00389,427140,066(1,841)
257,655

30,00389,427
136,590(1,841)
254,179

6,708
(828)
2,2372,835
10,952
77
576
269,261436,7637,596(306)
3,110
2,767
13,167
77562
267,986
464,199

(Tranlated)

Itoham Yonekyu Holdings Inc.

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Million Yen)
Three Months Ended
Three Months Ended
June 30, 2022
June 30, 2023
(Apr 1, 2022 - Jun 30, 2022） (Apr 1, 2023 - Jun 30, 2023）

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating Income
Interest income
Dividend income
Rental income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Share of loss in investments accounted for using theequity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on disaster
OthersTotal extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

212,325
179,615
32,71025,596
7,114

227,558
195,353
32,20426,892
5,311

13
132
116
276
293
832

54
145
114
170
451
936

107
38

324
34

54

279

48
248
7,698

9
647
5,600

30
3

1
1
2

58
－－
58
7,643
1,224
1,278
2,503
5,140
11
5,129

23
248
4
277
5,326
639
1,319
1,959
3,366
9
3,357

(Tranlated)

Itoham Yonekyu Holdings Inc.

Consolidated statements of comprehensive income(Million Yen)
Three Months Ended
Three Months Ended
June 30, 2022
June 30, 2023
(Apr 1, 2022 - Jun 30, 2022） (Apr 1, 2023 - Jun 30, 2023）

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
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

75,1403,366(772)
557
2,281
(91)

87952139(99)

1,149

884

3,124
8,265

2,225
5,592

8,226
39

5,572
19

(Tranlated)

Itoham Yonekyu Holdings Inc.

(3) Notes on the consolidated financial statements(Notes on going concern assumptions)Not applicable.

(Notes in the case of significant changes in shareholders' equity)
Not applicable.

(Segment information)
I, Three Months Ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
1. Information on net sales and profit and loss for each reportable segment
Reportable segments
OthersProcessed Food
Meat Division
Division(Note 1)

TotalAdjustments(Note 2)

Total

(Million Yen)
Amountrecorded on
consolidated
quarterlystatements ofincome(Note 3)

Net sales
88,895
123,427
212,3223
212,325－
Net sales to customers
Intersegment net sales
6,828
19,696
26,525201
26,727(26,727)or transfers
95,724
143,123
238,847
205
239,052(26,727)
Total
2,591
5,460
8,052
6
8,058(360)
Segment profit (loss)(Note)
1. "Others" segment which is not included in the reportable segments such as human resource and payroll related services.
2. The main content of adjustment of segment profit (loss) is the amortization of goodwill of (347) million yen.
3. Segment profit (loss) is adjusted to ordinary profit in the quarterly consolidated statements of income.

212,325－212,325
7,698

II, Three Months Ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on net sales and profit or loss for each reportable segment
Reportable segments
OthersProcessed Food
Meat Division
Division(Note 1)

Total

Adjustments(Note 2)

Total(Million Yen)
Amountrecorded on
consolidated
quarterlystatements ofincome(Note 3)

Net sales
93,852
133,702
227,5543
227,558－
Net sales to customers
Intersegment net sales
9,556
16,802
26,359221
26,580(26,580)
or transfers
103,409150,504
253,913224
254,138(26,580)
Total
1,598
4,332
5,930
(3)
5,927
(326)
Segment profit (loss)(Note)
1. "Others" segment which is not included in the reportable segments such as human resource and payroll related services.
2. The main content of adjustment of segment profit (loss) is the amortization of goodwill of (347) million yen.
3. Segment profit (loss) is adjusted to ordinary profit in the quarterly consolidated statements of income.
2. Note for changes in reportable segments, etc.
From this first quarter, the segment of logistics business have changed from "Other" to "Processed Food Division"according to Group's organizational changes.
Previous year segment information show by after changing of logistics business.

8227,558－227,558
5,600