Tokyo Stock Exchange, Prime Market, Securities Code: 2004

Financial Results Briefing for 2Q of
FY2024 (Ending March 31, 2024)

Showa Sangyo Co., Ltd.
President and CEO
Hideyuki Tsukagoshi
November 17, 2023

Agenda1

Overview of financial results for 2Q of FY2024

2

Earnings forecast for FY2024

3

Progress of Medium-Term Management Plan 23-25

Copyrightⓒ2023 SHOWA SANGYO Co., Ltd All Rights Reserved.

2

Overview of Consolidated Financial Results for 2Q of FY2024(0.1 billions ofyen)

FY2023 2Q

Net sales

Change(Year-onYear)FY2024 2Q

Percentage ofchange (Yearon-Year)

1,634

1,755

121

7.4%

Operating profit

23

73

50

217.2%

Ordinary profit

33

85

52

158.4%

Profit1957

37

194.2%Net sales

1,399
24

1,634
25
292

(0.1 billions of yen)23
296

2022.3 2Q(0.1 billions of yen)(+)

Easing of behavioral restrictions andrecovery of inbound demand in linewith the shift to the fifth category of
COVID-19(+)

Sales and profit increased as a resultof proposal-based sales by target
business type and focusing on sales
at fair prices(-)

Sales volume decreased due toprioritizing sales at fair prices in linewith rising manufacturing costs, etc.

(-)

In the animal feed segment, sales
volume of compounded feed andeggs decreased due to the spread of
bird flu and heat waves

73

1,755

255

1,118

Operating profit

Key points of 2Q of FY2024

1

Other
Animal feed
Food

1,316

2023.3 2Q

1,435

2024.3
2Q

24

23

4

1

19

22

2022.3 2Q

2023.3 2Q

73

2024.3 2Q
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3

Factors for Changes in Operating Profit for 2Q of FY2024
By factor

By segment(0.1 billions of yen)(0.1 billions of yen)

106
51

4

▲51

73
▲0.3

▲0.3

Animal
feed

Other

73

▲5
23

23
▲3
2023.3 2Q

Sales volume

Sales unit
price

Costs

Selling,
general andadministrative
expenses

Other2024.3 2Q

2023.3 2Q

Food

2024.3 2Q

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4

By Segment: Foods Business(0.1 billions of yen)

Net sales
Operating profit

2023.32Q

2024.3
2Q

Flour milling
Change

1,316

1,435

118

22

73

51

(0.1 billions of yen)

80

Operating profit73▶ Expansion of sales channels by strengthening proposals taking advantage of sales systems by business
type▶ Strengthening of cooperation among five companies and seven plants, including group companies→ Group-wide development of initiatives such as improvement of productivity and cost reduction, andoptimization of production sites▶ Continuation of integrated business structural reform among four group companies in baked bread business→ Productivity improvement and food waste reduction through consolidation of number of items andthorough cost management▶ Strengthening premix production through cooperation among the Funabashi Premix No. 2 Plant and groupcompanies▶ Launching and expanding sales of new commercial wheat flour products→ Expanding sales of “andJ”, using 100% domestic wheat flour, and launching “C blanc +” flour for
confectionery

Vegetable oils

60
▶
▶
▶
▶

40

20

19

Net sales and profit Increase

Stabilizing profits by optimizing sales prices and strengthening oil type portfolios
Implementation of capital and business alliance with Tsuji Oil Mills
Strengthening proposals for functional vegetable oils and other products utilizing other business channels
Launch of a new soybean meat product "Sonomama Tsukaeru! (you can use it as is) Mametan”

22

Starches and sweeteners

02022.3 2Q

Net sales and profit Increase

2023.3 2Q

2024.3 2Q

Net sales and profit Increase▶ Appropriate price revisions through appropriate dissemination of information to customers▶ Promotion of business structure reform including optimization of production sites integrated among threegroup companies (Showa Sangyo, Shikishima Starch MFG, and San-ei Sucrochemical) and selection andconcentration of product categories▶ Promotion of expansion of sales of differentiated products→ Powdered corn syrup, crystalline glucose, and San-ei Sucrochemical’s unique acidic oligosaccharide,etc.
Copyrightⓒ2023 SHOWA SANGYO Co., Ltd All Rights Reserved.

5

By Segment: Animal Feed Business(0.1 billions of yen)2023.32Q

2024.3
2Q

Change

292

296

4

1

1

▲0

Net sales
Operating profit(0.1 billions of yen)

Operating profit
6

Mixed animal feed
▶ Promotion of sales at fair prices (price pass-on) commensurate with costs rising due tosurging energy costs, etc.
▶ Decrease in sales volume affected by the spread of bird flu and heat waves▶ Expansion of sales through proposals for solutions for issues that farms (customers) needto address▶ Expansion of sales of high-value-added products, namely synthetic milk andoligosaccharide mixed animal feed

Eggs and others▶ Expansion of profit scale and pursuit of stabilization through development of layered
business strategy integrated between Showa Sangyo and Showa Keiran▶ Development and sales of branded eggs taking advantage of synergy across the Group▶ Creation of new value through pursuit of technology to make feed from unused raw
materials

43

Initiatives for unused raw materials
11

0
2022.3 2Q

2023.3 2Q

2024.3 2Q■ Social issues (ESG) ■Initiatives to contribute to the realizationof a recycling-oriented and sustainable
society by utilizing materials that areconventionally discarded< Contribution from an ESG
perspective >■ Value creation (corporate profits) ■Economic profits from converting nonvaluable items (items whose disposal
requires costs) into valuable items, andimprovement of customer value throughinitiatives with customers of otherbusinesses<Contribution in economic value>
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6

Agenda1

Overview of financial results for 2Q of FY2024

2

Earnings Forecast for FY2024

3

Progress of Medium-Term Management Plan 23-25

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7

Assumptions for Earnings Forecasts for FY2024■ Cost environment [Raw materials, exchange rates, energy]
FY2023
April-Juneresults

July-September
results

FY2024

OctoberDecember
results

January-March
results

April-Juneresults

July-September
results

October-March
assumption

Wheat yen/t*1

61,82072,53072,53072,53072,53076,75072,290

Soybean ¢/Bu*2

1,653

1,641

1,474

1,475

1,501

1,440

1,361

Rapeseed C$/MT*3

1,108

1,022

842

856

793

745

804

Corn ¢/Bu*4

730

738

665

663

653

592

500

Sea freight US$/t*5

74.5

77.5

62

54.6

53

48.9

55

Exchange rate*6120.02133.27141.63136.04133.39140.04144.00LNG yen/kg*7

94.0

110.6

152.7

132.5

103.2

75.8

104.8

*1:
*2:
*3:
*4:
*5:
*6:
*7:

Average price of five brands three months prior to the relevant period
Average Chicago market price two months prior to the relevant period
Average ICE market price two months prior to the relevant period
Average Chicago market price two months prior to the relevant period
Panamax vessel of U.S. Gulf-Japan (Based on corn)
Average TTM two months prior to the relevant period
Average unit price calculated from value and quantity of imported goods in the country of origin based on the actual monthly preliminary figures of Trade Statistics ofJapan disclosed two months prior to the relevant period
Copyrightⓒ2023 SHOWA SANGYO Co., Ltd All Rights Reserved.

8

Earnings forecast for FY2024
As a result of prioritizing sales at fair prices, we revised our forecast as follows(announced on November 10, 2023).
Compared withinitial forecast

Earnings forecast

Compared withFY2023 results

FY2023(Results)

FY2024 (Initial
forecast)*Announced on
May 11

FY2024(Revised
forecast)*Announced on
November 10

ChangePercentage
of change

ChangePercentage
of change

3,350

3,600

3,400

▲200

▲5.6%

49

1.5%

Operating profit

41

75

100

25

33.3%

58

139.0%

Ordinary profit

65

86

120

34

39.5%

54

83.9%

Profit

77

55

90

35

63.6%

12

15.7%

(0.1 billions ofyen)

Net sales

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9

Earnings Forecast for FY2024(0.1 billions of yen)

FY2023

FY2024 forecast

Change(Year-on-Year)

Percentage ofchange (Yearon-Year)

1.5%

3,350

3,400

49

2,705

2,770

64

Animal feed

594

580

▲14

Other

50

50

▲0.7

Operating profit

41

100

58

Food

39

99

59

Animal feed

4

5

1

Other

13

10

▲3

▲15

▲14

1

Ordinary profit

65

120

54

83.9%

Profit

77

90

12

15.7%

Net sales
Food

Company-wide
expenses, etc.

139.0%

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10

Earnings Forecast for FY2024 (by Segment)
Change in net sales

Change in operating profit(0.1 billions of yen)(0.1 billions of yen)

59
3,350

64

▲2

3,400
▲14

100

1

▲0.7
41

FY2023

Food

Animal feed

Other

FY2024(Forecast)

Food and Animal feed(+) Building of an efficient sales system throughreorganization(+) Prioritizing sales at fair prices(+) Focus on development of new products and entry into
new markets(+) Strengthening sales of functional products

FY2023

Food

Animal feed

Other

FY2024(Forecast)

Food and Animal feed
(+)
(+)
(+)
(+)

Building of an efficient sales system through reorganization
Prioritizing sales at fair prices
Focus on development of new products and entry into newmarkets
Strengthening sales of functional products

Other
(-)

Decrease in profit due to decrease in cargo volume
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11

Priority Measures for the Second Half (by Segment)
The market as a whole has yet to recover to pre-COVID-19 sales volumes, and the yen
continues to weaken, keeping the outlook uncertain.
Steady promotion of strategies in each category to secure profits.
Food Business: Flour Milling▶ Development of new customers and markets by leveraging sales system bybusiness type
▶ Further strengthening of cooperation among five companies and seven plants in theGroup⇒ Raw material procurement - optimization of production sites - improvement of
productivity▶ Strengthening of premix production through cooperation among the Funabashi
Premix No. 2 Plant and group companies▶ Baked bread⇒ Continuing business restructuring and brushing up product development inresponse to changes in demand in stores

Strengthening of premix production

Kobe Plant(35,000 t/year)
Okumoto Flour Milling(28,000 t/year)

Itako Plant(37,000 t/year)
Funabashi Food Plant(35,000 t/year)

Funabashi Premix No. 2 Plant(28,000 t/year)
Nearly double thatof previous facility

Secured163,000 t/year production capacity Group-wide

Food Business: Vegetable Oils
▶ Promoting collaboration initiatives with Tsuji Oil Mills through capital and business alliance▶ Improvement of competitiveness and expansion in sales of rice bran oil and corn oil ⇒ strengthening alliance with Boso oil and fat andTsuji Oil Mills▶ Development and expansion of sales of functional oils and fats ⇒ promotion of proposal-based sales utilizing other business channels▶ Development and sales of soybean processed products and new soybean protein materials▶ Strengthening of sales system to expand sales of frozen foods
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Priority Measures for the Second Half (by Segment)
Food Business: Starches and sweeteners▶ Expansion of sales to target users and stabilization of earnings through review
of customer portfolios▶ Promotion of further diversification of raw material procurement channels▶ Optimization of production sites and promotion of business structural reform
integrated among three group companies▶ Further promotion of differentiation strategies for products (powdered cornsyrup, crystalline glucose, and acidic oligosaccharide, etc.), which are theGroup’s strengths⇒ Enhancement of proposal-based sales using BtoB marketing functions

Showa

Starchesandsweeteners

Shikishima
SHIKISHIMAStarch MFG

San-eiAnimal Feed Business▶ Sales at fair prices (price pass-on) commensurate with costs▶ Efforts to recover sales volume of mixed animal feed for chickens▶ Expansion of sales through proposals for solutions for issues that farms
need to address▶ Expansion of profit scale and pursuit of stabilization through development oflayered business strategy integrated between Showa Sangyo and Showa
Keiran▶ Expansion of sales of high-value-added products, namely synthetic milk andoligosaccharide mixed animal feed
▶ Creation of new value through pursuit of technology to make feed fromunused raw materials

Initiatives for layered business strategy

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13

Change in Capital Investment and Depreciation(Progress and Forecast for FY2024)(0.1 billions of yen)

Consolidated basis
160

144
140

125

123

120
100
80

97
85
73

75

76 79

78

85

81

87

99

101
94

108

100
67

50

60
40
20
0
2016.32017.32018.32019.3

Capital Investment

2020.32021.3

Depreciation

2022.32023.3

FY2024(forecast)[Major Capital Investments]
Expansion of new facilities at Grandsolu Bakery, renewal of Kashima Plant facilities, renewal of headquarters coresystems and renewal of San-ei Sucrochemical Co., Ltd. facilities, etc.
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14

Change in R&D Expenditures
Consolidated basis(0.1 billions of yen)

35

30

27

26

28

24

25

22

21

22

22

20

12

15

10

5

0
2017.32018.32019.32020.32021.32022.32023.3

FY2024(forecast)

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15

Return to Shareholders (Dividends)
Change in dividends per share and dividend payout ratio
70

Dividend payout ratio
(%)
70
70.0

60

60.0

Dividends

Dividends (yen)Dividend payout ratio

49.7

50
40

50.0
32.3

30.0

30.9
*1

40.0
27.9

26.1

30

26.0

20
10

30.0
20.0

50

60

65

60

65

65

30

0

10.0
0.0

2018.32019.3

Dividend
payout ratio

2020.32021.3*1:

Approx. 30%

2022.32023.3

FY2024(forecast)

The dividend payout ratio for the fiscal year ending March 2021
does not include the impact of negative goodwill gains.
If included, the ratio will be 20.3%

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16

Agenda1

Overview of financial results for 2Q of FY2024

2

Earnings Forecast for FY2024

3

Progress of Medium-Term Management Plan 23-25

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17

Five Key Strategies of Medium-Term Management Plan 23-25
15.

Evolution of the “Grain Solution”
Enhancement of sales by transformation into “onestop” sales system
Expansion of business and enhancement of
profitability through Group collaboration
Optimization of product composition
Expansion of value-added products sales through adifferentiation strategy
Strengthening stable procurement

3

Reducing Burden on theEnvironment

1.

2.
3.
4.

1.
2.
3.
4.

2 Expansion of Business Fields

Strengthening Our Core Businesses

Continuous efforts to achieve ourenvironmental goals
Reduction of packaging plastic
Advanced utilization of biomass
Developing road map to achievecarbon-neutrality

4
1.
2.

3.

1.

2.
3.
4.

Expansion of overseas businesses by strengthening
existing businesses in the ASEAN region anddeveloping new businesses
Strengthening of export business
Expansion of frozen food businesses
Challenge to new businesses
Plant-based foodFine chemicals, oleochemicals

5

Rebuilding Our Platform
Establishment of organizational basethrough reorganization
Sophistication of business portfolio
management through introduction of
ROIC
Establishment of a system tosophisticate business throughdigitization and for DX

1.
2.
3.

Enforcing Stakeholder
Engagement
Drastic promotion of D&I
Promotion of strategic humanresources development
Strengthening of information
dissemination and enhancing
recognition of the Group via SNS

Sophistication of sustainability management to support our Group’s sustainable growth
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18

Quantitative Effects of Priority Measures on Ordinary Profit
We will aim to generate ordinary profit of+6.5 billion yen by steadily executing the following measures.
Key Strategy (1) Strengthening of Our Core
Businesses
1.

Evolution of the “Grain Solution”

+0.4

2.

Expansion of business and enhancement of
profitability through Group collaboration

+0.9

3.

Optimization of product composition

+0.4

4.

Expansion of value-added products sales
through a differentiation strategy+1.0

Key Strategy (2) Expansion of
Our Business Fields
1.
2.

Expansion of overseas
businesses
Expansion of frozen foodbusinesses

Recovery of business environment,
responding to business environmental
changes+0.5

1.

Recovery of sales volume

+0.6

+0.3

2.

Appropriate price revision+2.4+¥3 billion+¥0.8 billion+¥2.7 billion

14.0

3.0

13.0

12.0
10.2
10.0

9.2

8.0

Ordinary profit
6.5

0.8
2.7

6.5

6.0
4.0

+¥6.5
billion2.0
0.0
ordinary
profit(¥billion)

2020.32021.32022.32023.3
Forecast

Strengthening Our
Core Businesses

Expansion ofBusiness Fields

Recovery of businessenvironment,
responding to businessenvironmental
changes

2026.3
TargetCopyrightⓒ2023 SHOWA SANGYO Co., Ltd All Rights Reserved.

19

Quantitative Effects of Priority Measures on Ordinary Profit
Key Strategy (1) Strengthening of Our
Core Businesses

Key Strategy (2) Expansion of
Our Business Fields

Recovery of business environment,
responding to business environmental
changes

1. Evolution of the “Grain Solution”+0.4

1. Expansion of overseas
businesses+0.5

1. Recovery of sales volume+0.6

2. Expansion of business and enhancement of
profitability through Group collaboration+0.9

2. Expansion of frozen foodbusinesses+0.3

2. Appropriate price revision+2.4

3. Optimization of product composition+0.4

4. Expansion of value-added products sales
through a differentiation strategy+1.0+¥0.8 billion+¥3 billion+¥2.7 billion

65 earnings structure is highly affected by changes in the[Issues recognized] Ourbusiness environment⇒ Promotion of (1) Strengthening of Our Core Businesses and (2)Expansion of Our Business Fields
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20

Key Strategy (1) Strengthening of Our Core Businesses
1. Evolution of solutions -Effects of reorganization-

Promotion of "one-stop" solution proposals▶ Strengthening of production and sales of premix products to meet customer needs▶ Enhancing proposals for functional vegetable oils to Flour Milling Business channels▶ Expansion of pasta sales to the restaurant industry[Funabashi Premix No. 2 Plant][”One-stop-type” sales system by businesscategory and customer]

CustomerBusiness Division(Business Management)

CompanyA
Company
B
CompanyC
Company
D

Sales Division (Sales)
Flour milling
Vegetable oils
Starches andsweeteners
Animal feed

Integration of sales
contacts
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21

Key Strategy (1) Strengthening of Our Core Businesses
2. Expansion of business and enhancement of profitability through Group collaboration[Baked bread]▶ Continuing integrated business structural reform among fourgroup companies⇒ Productivity improvement and food waste reduction▶ Brushing up product development in response to changes indemand in stores[Flour Milling]▶ Strengthening of cooperation among five companies andseven plants in the Group⇒Group-wide development of initiatives for productivity
improvement and cost reduction[Vegetable Oils]▶ Strengthening of collaboration with Tsuji Oil Mills throughcapital and business alliance▶ Continuing and enhancing initiatives to create synergy with
Boso oil and fat[Starches and sweeteners]▶ Structural reforms through collaboration among three groupcompanies, including initiatives to create synergy with San-ei
Sucrochemical

Flour
Milling
Others
Shosan Shoji
Shosan Kaihatsu
Shosan Transportation
Shosan Business Services
Shourei
Oban

OkumotoFlour Milling
Kida Flour Mills
Naigai Flour Milling
Central Flour Milling

Vegetable
Oils

Boso Oil and Fat

FrozenFood

Showa Frozen
Foods

Starch andSweetener
San-ei
Sucrochemical

BakingBreadAnimalFeed

Swing Bakery
Grandsolu Bakery
Garden Bakery
Tower Bakery

KyushuShowa Sangyo

Shikishima Starch
MFG

Showa Keiran

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22

Key Strategy (1) Strengthening of Our Core Businesses
3. Optimization of product composition
Optimization of oil type portfolios▶ Strengthening of rice bran oil and corn oil through alliances with Boso oil and fat and Tsuji Oil Mills⇒ Development of a revenue structure less affected by changes in business environment throughdiversification of oil type
[Percentage of oil type in profit]
Earnings
stabilization

25%

Rice bran, corn,
sunflower, olive
and functional
vegetable oils,
etc.

Rice bran, corn,
sunflower, olive
and functional
vegetable oils,
etc.

General-purpose oilsuch as soybean oil
and rapeseed oil

75%

2020.3 (Pre-COVID-19)

35%

Securing stable
operations
General-purpose oilsuch as soybean oil
and rapeseed oil

65%2026.3 Target
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23

Key Strategy (1) Strengthening of Our Core Businesses
4. Expansion of value-added products sales through a differentiation strategy
Flour milling

Vegetable oils

Starches and sweeteners Strengthening of production andsales of small-package premix
products to meet customerneeds

 Development and expansion ofsales of functional frying oils

 Expansion of sales of functional
powdered corn syrup and acidic
oligosaccharide, the Group’s
original products⇒ Efficient production at
Funabashi Premix No. 2
Plant

 Expansion of sales of soybean
protein Strengthening of developmentof processed oils and fats65%

 Improvement of profitability of
crystalline glucose
 Strengthen of lactic acid bacteria
business

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24Capital Allocation (3-year-aggregate) - Fiscal 2023-2025
Cash inCash out
Shareholder return 6 billion yen

Growth investment
Operating cash flow

Cash inOperatingcash flow

Harvest the fruits from implementation of , Medium-Term
Management Plan’s 1st & 2nd strategies and generate
operating cash flow of 56 billion yen

Reduction ofassetsReduction of cross-shareholdings and non-core real estate

Funding

Comprehensive ALM management and systematic fundingplans

33 billion yen

56 billion yen
Capital investment for
maintenance andrenewalReduction of assets 3-4 billion yen

23 billion yen

Funding 9-10 billion yen

Redemption of SB 7billion yen(69 billion yen)

(69 billion yen)

Cash out
Shareholder
returnContinue long-term stable dividend payout with atarget payout ratio of around 30%

Growthinvestment

Total: 33 billion yen

Environmental
measures

New business 3.5billion yen
11%
Expanding
production
capacity

34%
Working
capitalDigitalization

5% 4%
M&A
15 billion yen

46%

Shorten CCC by optimizing inventories to avoid
working capital increase
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25

Renewal of the Kobe Plant's flour milling multi-tier automatedwarehouse (scheduled to be completed in February 2026)
Key Strategy (1) Strengthening of Our Core Businesses - Improvement of logistics
functions and efficiency Response to "The 2024 Problem" and "White Logistics"▶ Centralized computerized management from manufacturing to storage, picking and shipping▶ Reduce loading and waiting times by automating and saving manpower for labor-intensive tasks▶ Promote reduction of environmental burden and logistics optimization to realize sustainablelogistics[Overview of new warehouse]
Address

Showa Sangyo Co., Ltd. Kobe Plant (5Mikagehama-machi, Higashinada Ward, Kobe City)

Total floor area

3,900 m2 (warehouses, shipment area, etc.)

Total investment

3.5 billion yen

Storage items

Wheat flour products (paper-bagged for pallet)

Capacity ofmulti-tier automatedwarehouse

190,000 bags (4,750 tons)

Start of operation

February 2026

[Image of completion]

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26

Introduction of biomass power boiler at Kashima Plant
Key Strategy (3) Reducing Burden on the Environment ~ Reducing CO2 Emissions ~[Environmental goals] Reduction of 30% or more in FY2026 and 46% or more in FY2031▶ Introduction of biomass power boiler utilizing renewable energy such as wood chips⇒ Reduce annual CO2 emissions by about 37,000 tons
⇒ The overall CO2 reduction rate of Showa Sangyo Group is expected to be 37% or more(compared with FY2014)[Overview of biomass power boiler]
Address

Showa Sangyo Co., Ltd. Kashima Plant (6Higashifukashiba, Kamisu City, Ibaraki Prefecture)

Type of equipment

Wood-chip fired biomass power boiler, Capacity:
30 tons/h steam, 1,500 Kw power generation

CO2 reduction

Approximately 37,000 tons/year

Capitalinvestment
amountApproximately 3.5 billion yen

Expected start ofoperation

FY2027[(2009)Biomass boiler introduced at Kashima Plant]

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27

Reference material

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28

Overview of Consolidated Balance Sheet
Consolidated Balance Sheet(0.1 billions of yen)Mar. 2023

Sep. 2023

Change

1,234

1,311

76

Cash and deposits

62

80

18

Trade receivables

553

608

55

Current assets

Inventories

587

580

▲6

Other

32

41

9

Non-current assets/Deferred assets
Property, plant and equipment/
Intangible assets

1,242

1,313

70

874

886

11

Investments and other assets

367

427

59

2,477

2,624

147

Total assets

Mar. 2023

Sep. 2023

359
2020

2021

587

580

2022

2023

2023 (end of
Sept.)

Change in interest-bearing debt (0.1 billions of yen)

Change1,381

67

Trade payables

324

353

29

Interest-bearing debt

603

597

▲6

Provision

18

19

0

Other

367

412

44

Net assets

1,163

1,242

79

1,037

1,083

46

Comprehensive income and other

92

124

32

Non-controlling interests

33

34

1

49.2

46.7

Total liabilities and net assets

2,477

2,624

147

2020

2021

Shareholders’ equity

467

277

1,314

Liabilities(0.1 billions of yen)

Change in inventories

441

518

603

2021

2022

2023

2023 (end of
Sept.)

45.7

45.6

46.0

2022

2023

2023
(end of Sept.)

597

293
2020

Change in capital adequacy ratio

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29

Cash Flows(0.1 billions of yen)
FY2023 2Q

FY2024 2Q

ChangeProfit before income taxes
Depreciation <Non-cash items>
Impairment losses <Non-cash items>
Change in working capital (trade receivables, inventories, trade
payables)Income taxes paid/refund
Other
Cash flows from operating activities

27
48
3

82
48
‐

55
0
△3

△ 142

△ 19

122

△3
△1
△ 67

△ 21
14
105

△ 17
16
172

Acquisition of property, plant and equipment
Acquisition of investment securities
Other

△ 57
△ 12
△6

△ 49
△0
△ 17

8
11
△ 11

Cash flows from investment activities
Free cash flow
Short-term borrowings, commercial papers, long-term borrowings
Dividends paid
Other
Cash flows from financing activities
Cash and cash equivalents at end of period

△ 76
△ 144
147
△ 10
△1
135
83

△ 67
38
△6
△ 11
△1
△ 19
80

9
182
△ 154
△1
△0
△ 155
△2

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30

Change in Quarterly Net Sales and Operating Profit
2Q

1Q(millions of yen)2023.32024.32023.3

Change2024.3

ChangeFood

65,69573,665

7,969

65,93569,864

3,928

Animal feed

13,781

14,967

1,185

15,447

14,726

▲721

Other

1,210

1,166

▲44

1,339

1,192

▲147

Total

80,68889,7999,111

82,72285,783

3,060

Food

1,973

3,353

1,380

242

3,967

3,724

Animal feed

▲104

▲7

97

259

126

▲133

307

302

▲4

392

357

▲34

▲360

▲336

24

▲392

▲412

▲19

1,815

3,313

1,497

502

4,039

3,537

Net sales

Operating Other
profitCompany-wide
expenses, etc.

Total

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31

Notes regarding forecasts and projections
The figures included in this material are formulated based on information currently available and certain assumptions judged to be reasonable. As this material contains
potential risks and uncertainties, we do not guarantee its achievement or future performance.
Furthermore, as actual results, etc., may also significantly differ from initial projections and plans mentioned in this material, you should refrain from making investment
decisions based solely on this material.
Showa Sangyo Group will not necessarily review the Medium-Term Management Plan or assume any obligation to do so, regardless of future information, events orconsequences caused by them.

Copyrightⓒ2023 SHOWA SANGYO Co., Ltd All Rights Reserved.

32