Supplementary Explanation to Financial Results Second Quarter Year Ending March 31, 2022

November 05, 2021

Itoham Yonekyu Holdings Inc.

Supplementary Explanation to Financial Results

Second Quarter Year Ending March 31, 2022

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1) Summary of Financial Results

(Million Yen, %)	(Million Yen, %)
After applying revenue recognition	*Previous year
(Our estimated value)	published figures

Actual 2021	% of Sales	Actual 2020	% of Sales	Change

Sales	417,762		400,413		17,348	4.3
Gross Profit	67,178	16.1	63,770	15.9	3,407	5.3
S, G & A Expenses	52,698	12.6	51,530	12.9	1,167	2.3
Operating Income	14,480	3.5	12,240	3.1	2,239	18.3
Non-operating Income	1,468		868		600
Non-operating Expenses	- 296		- 398		102
Equity Method Gain/Loss	888		449		439
Net Non-operating Gain/Loss	2,060		919		1,141
Ordinary Income	16,540	4.0	13,158	3.3	3,381	25.7
Extra-ordinary Gain	451		2,615		- 2,163
Extra-ordinary Loss	- 103		- 149		45
Net Extra-ordinary Gain/Loss	348		2,466		- 2,118
Income Before Taxes	16,888	4.0	15,624	3.9	1,263	8.1
Net Income	11,810	2.8	10,560	2.6	1,249	11.8

Actual 2021 % of Sales

414,623

68,290 16.5

55,664 13.4

12,625 3.0

868

• 398
  449
  918

13,544 3.3

2,615

• 149
  2,466

16,010 3.9

10,946 2.6

(Million Yen)

18,000
17,000
16,000
15,000											+1,550			+212	14,480
											- 50	- 36
14,000						+250	- 136	+200	- 700
			+1,350	- 250	+50
13,000										0
12,240	- 200
12,000
11,000
10,000	OP Year Previous	volume Sales	A & SG / profit Gross	Utility / material Raw	impact cost Logistics	Reduction Cost	Others	volume Sales	A & SG / profit Gross	impact cost Logistics	Operation Overseas	Production Animal	Others	Other/Adjustments	Income OP Year Current
Income

Processed Foods Division	Meat Division	Others
+1,063	+964	+212

(Note) From the beginning of the fiscal year, the "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29)

has been applied to the business forecast for the current fiscal year.

In the fiscal year ending March 2021, the Company's estimated values after the application of the relevant accounting standards are used for comparison with the current fiscal year.

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2) Segment Information

(1) Operating Segment Information			(Million Yen, %)
			After applying revenue recognition				*Previous year
			(Our estimated value)				published figures
		Actual 2021	Actual 2020	Change			Actual 2020
Processed Foods Division	Sales	148,257	146,930	1,327	0.9		150,631
	OP Margin	6,510	5,446	1,063	19.5		5,823
	% of Sales	4.4	3.7	0.7			3.9
Meat Division	Sales	267,409	251,490	15,918	6.3		261,998
	OP Margin	8,601	7,637	964	12.6		7,646
	% of Sales	3.2	3.0	0.2			2.9
Others/Adjustments	Sales	2,095	1,992	103			1,992
	OP Margin	- 631	- 843	212			- 843
Consolidated	Sales	417,762	400,413	17,348	4.3		414,623
	OP Margin	14,480	12,240	2,239	18.3		12,625
	% of Sales	3.5	3.1	0.4			3.0

Operating Income Factors

Processed Foods Division	(Million Yen)
	Change
Sales volume	- 200
Gross profit / SG & A	1,350
Raw material / Utility	- 250
Logistics cost impact	50
Cost Reduction	250
Others	- 136
Total	1,063

Meat Division	(Million Yen)
	Change
Sales volume	200
Gross profit / SG & A	- 700
Logistics cost impact	0
Overseas Operation	1,550
Animal Production	- 50
Others	- 36
Total	964

(2) Sales by Market

			(Million Yen)
		After applying revenue recognition
		(Our estimated value)
	Actual 2021	Actual 2020	Change
Japan	361,272	355,050	6,221
Asia	21,223	15,805	5,417
North America	15,292	12,238	3,053
Oceania	12,810	9,619	3,191
Europe	6,135	6,124	11
Others	1,028	1,575	- 546
Overseas Sales Total	56,490	45,362	11,127
All Total	417,762	400,413	17,348
Overseas Sales (%)	13.5	11.3	2.2

(Note) From the beginning of the fiscal year, the "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) has been applied to the business forecast for the current fiscal year.

In the fiscal year ending March 2021, the Company's estimated values after the application of the relevant accounting standards are used for comparison with the current fiscal year.

(Million Yen)

*Previous year published figures

Actual 2020

369,260

15,805

12,238

9,619

6,124

1,575

45,362

414,623

10.9

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3) Financial Data

Sales

			After applying revenue recognition
			(Our estimated value)		(Million Yen, %)
		Actual 2021	Actual 2020		Change
Ham/Sausage		85,633	85,735		- 102	- 0.1
Processed Foods		72,585	69,627		2,958	4.2
Meat		249,707	237,466		12,241	5.2
Others		9,836	7,588		2,248	29.6
Total		417,762	400,413		17,348	4.3
SG & A Expenses
			After applying revenue recognition
			(Our estimated value)		(Million Yen, %)
		Actual 2021	Actual 2020		Change
Labor Expenses		17,522	17,533		- 11	- 0.1
Shipping / Handling		18,905	18,552		353	1.9
Advertisement		2,121	1,930		190	9.9
Sales Fees		10	37		- 27	- 73.0
Packing		1,759	1,759		0	0.0
Depreciation		876	905		- 28	- 3.2
Other Expenses		11,502	10,811		691	6.4
Total		52,698	51,530		1,167	2.3
Non-Operational G/L
						(Million Yen, %)
		Actual 2021	Actual 2020		Change
Equity Method		888	449		439	97.8
Financing		- 2	- 59		56
Others		1,174	528		645	122.3
Total		2,060	918		1,141	124.4
*Major G/L( Equity in earnings of affiliates)
		Actual 2021	Actual 2020	Change
IPC (USA)	976	477		498
MIY (JPN)	- 1	- 1		0
ABC (THA)	- 202	- 131		- 70

Impact of fluctuations in foreign exchange rates related to ANZCO

136

564

6,461

788

7,951

Extra-ordinary Gain/Loss

				(Million Yen, %)
	Actual 2021	Actual 2020	Change
Sales of Investment Securities	55	0	54
Insurance income	134	2,597	- 2,463	- 94.8
Others	158	- 132	290
Total	348	2,466	- 2,118	- 85.9

(Note) From the beginning of the fiscal year, the "Accounting Standard for Revenue Recognition"

(Corporate Accounting Standard No. 29) has been applied to the business forecast for the current fiscal year. In the fiscal year ending March 2021, the Company's estimated values after the application of the relevant accounting standards are used for comparison with the current fiscal year.

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1. Forecast of Business Results and Dividends
   Business Results Forecast

						(Million Yen)
	First Half	Second Half	Year
	Actual 2021	Change	F'cast 2021	Change	F'cast 2021	Change
Sales	417,762	17,350	402,238	- 8,888	820,000	8,462
Operating Income	14,480	2,239	9,520	- 2,257	24,000	- 18
Non-operating G/L	2,060	1,143	- 60	- 2,125	2,000	- 982
Ordinary Income	16,540	2,996	9,460	- 3,996	26,000	- 1,000
Extra-ordinary G/L	348	- 2,118	- 1,348	- 995	- 1,000	- 3,113
Income Before Taxes	16,888	878	8,112	- 4,991	25,000	- 4,113
Net Income	11,810	864	4,690	- 4,568	16,500	- 3,704
Dividends Forecasts
	End of Year	EPS F'cast	Payout Ratio
	Yen	Yen	％
Actual 2020	21.00	68.61	30.6
Forecast 2021	22.00	56.35	39.0
Operating Segment Information Forecast
						(Million Yen, %)
		First Half	Second Half	Year
		Actual 2021	Change	F'cast 2021	Change	F'cast 2021		Change
Processed Foods Division	Sales	148,257	1,327	146,743	- 5,691	295,000		- 4,364
	OP Margin	6,510	1,063	4,290	- 2,661	10,800		- 1,597
	% of Sales	4.4	0.7	2.9	- 1.6	3.7		- 0.5
Meat Division	Sales	267,409	15,919	253,591	- 3,041	521,000		12,878
	OP Margin	8,601	964	6,199	393	14,800		1,357
	% of Sales	3.2	0.2	2.4	0.2	2.8		0.2
Others/Adjustments	Sales	2,095	103	1,905	- 155	4,000		- 52
	OP Margin	- 631	212	- 969	10	- 1,600		221
Consolidated	Sales	417,762	17,350	402,238	- 8,888	820,000		8,462
	OP Margin	14,480	2,239	9,520	- 2,257	24,000		- 18
	% of Sales	3.5	0.4	2.4	- 0.5	2.9		- 0.0

(Note) From the beginning of the fiscal year, the "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) has been applied to the business forecast for the current fiscal year.

In the fiscal year ending March 2021, the Company's estimated values after the application of the relevant accounting standards are used for comparison with the current fiscal year.

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