Mitsui Sugar : Summary of Consolidated Financial Results For the Nine Months of the Year Ending March 31, 2021

Summary of Consolidated Financial Results

For the Nine Months of the Year Ending March 31, 2021 (Based on Japanese GAAP)

January 29, 2021

Company name: Stock code:

Company representative: Contact person in charge:Mitsui Sugar Co., Ltd. 2109

Stock exchange listings: Tokyohttps://www.mitsui-sugar.co.jp/Taku Morimoto, President and Chief Executive Officer Hideaki Batori Executive Managing Officer,

General Manager, Group Strategy DivisionTEL. [phone]

Planned date for submission of quarterly report:	February 9, 2021
Planned date to start dividend payment:	－
Preparation of supplementary material for quarterly financial statements:	None
Briefing session for quarterly financial statements:	None

(Amounts are rounded down to the nearest 1 million yen.)

1. Consolidated Financial Results for the Nine Months of the Year Ending March 31, 2021 (from April 1, 2020 to December 31, 2020)

(1) Consolidated Results of Operations

Million yen

Net sales

%

Million yen

(Percentages are year-over-year changes.)Operating income

%

Million yen

Ordinary income

%

Million yen

Profit attributable to owners of parentFirst nine months of FY2020 First nine months of FY2019 (Note) Comprehensive income:

82,362 86,961

(5.3) 10.7

3,562 4,966

(28.3)

63.9

3,460 4,800

(27.9) (41.1)Nine months ended December 31, 2020: 2,504 million yen (-7.5%)

Nine months ended December 31, 2019: 2,708 million yen (-47.9%)

Earnings per share	Diluted earnings per share
First nine months of FY2020 First nine months of FY2019	Yen 102.56 105.86	Yen － －

(2) Consolidated Financial Position

%

2,636 2,759

(4.5) (45.2)

Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of December 31, 2020 As of March 31, 2020	Million yen 148,716 141,705	Million yen 93,506 92,395	% 56.4 58.4	Yen 3,263.15 3,218.77

(Reference) Equity capital:

2. Cash Dividends

As of December 31, 2020: 83,867 million yenAs of March 31, 2020: 82,727 million yen

Annual dividend
End of 1Q	End of 2Q	End of 3Q	Year end	Total
Year ended March 31, 2020 Year ending March 31, 2021	Yen - -	Yen 25.00 25.00	Yen - -	Yen 25.00	Yen 50.00
Year ending March 31, 2021 (forecast)	25.00	50.00

(Note) Revision of the dividend forecast announced most recently: None

3. Consolidated Business Forecasts for the Year Ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

(Percentages are year-over-year changes.)

% Million yen

Full year

115,000

Million yen

1.0

4,800

(1.0)

% Million yen	%	Million yen	%	Yen
(3.7)	2,400	(0.9)	93.38

(Note) Revision of the business forecasts announced most recently: NoneOrdinary income

Profit attributable to owners of parent

4,800

*Notes

• (1) Significant changes in subsidiaries during the period

  (Changes in specified subsidiaries resulting in changes of scope of consolidation): None New: － companies (company name): －

  Excluded: － companies (company name): －

• (2) Application of accounting method unique to preparation of quarterly consolidated financial statements: None

• (3) Changes in accounting policy and accounting estimates and restatement

  • (i) Changes in accounting policy due to any revision of accounting standards: Yes

  • (ii) Changes in accounting policy other than i) above: None

  • (iii) Changes in accounting estimates:

  • (iv) Restatement:

  None NoneNote: For more details, please refer to "2. Quarterly Consolidated Financial Statements and Important Notes, (3) Notes on quarterly consolidated financial statements (Changes in accounting policies)" on page 8 of the Appendix.

• (4) Number of outstanding shares (common shares)

  • (i) Number of outstanding shares at period end (including treasury shares)

  • (ii) Number of treasury shares at period end

  • (iii) Average number of shares during period (from the beginning of fiscal year to period end)

  As of December 31, 2020	28,333,480 shares	As of March 31, 2020	28,333,480 shares
  As of December 31, 2020	2,632,138 shares	As of March 31, 2020	2,631,827 shares
  Nine months ended December 31, 2020	25,701,532 shares	Nine months ended December 31, 2019	26,063,460 shares

  • * The quarterly kessan tanshin document is outside the scope of audit procedures conducted by certified public accountants and the independent auditor.

  • * Explanation on appropriate use of business forecasts, and other special notes

    Business forecasts and other forward-looking statements contained in this report and supplementary materials are based on information currently available to the Company and on certain assumptions deemed as rational. They do not constitute a guarantee that the Company will achieve its forecasts or other forward-looking statements. Actual results may differ significantly from forecasts due to various factors. For assumptions and other criteria used to formulate business forecasts, please refer to "1. Qualitative Information Regarding the Results for the First Nine Months of the Year Ending March 31, 2021, (3) Description of consolidated business forecasts and other information about future forecasts" on page 3 of the Appendix.

Mitsui Sugar Co., Ltd. (2109)

Summary of Consolidated Financial Results for the First Nine Months Ended December 31, 2020

• ○ Appendix

• 1. Qualitative Information Regarding the Results for the First Nine Months of the Year Ending March 31, 2021 ....................... 2

  (1) Description of consolidated operating results ....................................................................................................................... 2

  (2) Description of consolidated financial position ...................................................................................................................... 3

  (3) Description of consolidated business forecasts and other information about future forecasts .................................................. 3

• 2. Quarterly Consolidated Financial Statements and Important Notes ....................................................................................... 4

(1) Quarterly consolidated balance sheets .................................................................................................................................. 4

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income ...................... 6

(Quarterly consolidated statements of income) ..................................................................................................................... 6

(Quarterly consolidated statements of comprehensive income) ............................................................................................. 7

(3) Notes on quarterly consolidated financial statements ............................................................................................................ 8

(Note on assumptions of a going concern) ............................................................................................................................ 8

(Notes when the amount of the shareholders' equity significantly fluctuates) ......................................................................... 8

(Changes in accounting policies) ......................................................................................................................................... 8

(Segment information, etc.) ................................................................................................................................................. 8

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Mitsui Sugar Co., Ltd. (2109)

Summary of Consolidated Financial Results for the First Nine Months Ended December 31, 2020

1. Qualitative Information Regarding the Results for the First Nine Months of the Year Ending March 31, 2021

(1) Description of consolidated operating results

In the first nine months of fiscal 2020 (April - December 2020), Mitsui Sugar continued to work closely with Group companies to strengthen existing businesses and expand businesses in growth fields. However, with no signs of a slowdown in the spread of COVID-19, the outlook for the global economy remains highly uncertain, which continues to have a negative impact on sales at Group companies.

Despite that backdrop, there were some positives, such as an increase in profits in the Food Science Business and higher profits at Chinese affiliates (equity-method affiliates) on the back of increased sales volume. However, the Group's sales and profits declined overall due to a drop in royalty income, the start of redevelopment work at the former Nagata Plant in the Real Estate Business and a slow recovery in profits at affiliates in Thailand (equity-method affiliates) amid a poor sugar cane harvest.

(Sugar Business)

In the overseas crude sugar market, the sugar price fell sharply to the 9-cents per pound level in April, the lowest level in roughly 13 years, before trending upwards at a moderate pace amid a mixed market environment complicated by COVID-19 infection trends and speculation around sugar supply and demand. In September, speculative funds flowed into the market spurred by monetary easing worldwide, and the sugar market tightened in Asia due to a drought in Thailand. Against that backdrop, the price fluctuated in a narrow range between the low-14 cent and mid-15 cent levels before ending the third quarter at the mid-15 cent per pound level.

In sales activities, shipments of commercial-use and home-use products improved temporarily, supported by a range of government policies designed to balance economic activity with efforts to control the pandemic. However, demand for commercial-use products from the food souvenir and food service sectors failed to recover fully due to voluntary restrictions on homecoming visits and calls to reduce restaurant opening hours amid another wave of COVID-19 infections. In production activities, the Group worked to stabilize production, but sales and profits both declined.

In consolidated subsidiaries, sales and profits rose at Showa Sugar Co., Ltd. due to an increase in sugar cane production volume and a sharp improvement in the cost ratio. At Hokkaido Sugar Co., Ltd., production volume increased thanks to a good harvest of raw material sugar beet, but profits fell due to higher production costs related to a decline in sucrose content and increased warehousing costs to store unsold products as consumers held back on consumption. SIS' 88 Pte Ltd. benefited from an increase in home-use demand amid restrictions on movement in its domestic market of Singapore, but there was no full-fledged recovery in earnings, with sales and profits both decreasing.

As a result of the above, the Sugar Business reported overall net sales of 65,975 million yen and operating income of 2,032 million yen.

Sugar market status during period

Domestic market price (listed in Nippon Keizai Shimbun, per kilogram of a large bag of superfine sugar, Tokyo)

Nine months ended December 31, 2020: 187-188 yen

Overseas raw sugar price (NY sugar current delivery, per pound)

Opening price: 10.39 cents, highest price: 15.66 cents, lowest price: 9.05 cents, closing price: 15.49 cents

(Food Science Business)

In the Food Science Business, domestic sales volume for palatinose picked up in some sectors and demand for sugar cane extract used in disinfection applications and fertilizer applications rose in Japan and overseas. As a result, sales were steady year on year and profits increased.

Consolidated subsidiaries were unable to avoid the impact of the COVID-19 pandemic, with sales declining year on year, but profits improved at TAISHO TECHNOS CO., LTD., mainly reflecting an improvement in the cost ratio after the consolidation of production facilities in the previous fiscal year. Nutri Co., Ltd. also reported higher profits due to an improvement in selling, general and administrative expenses.

As a result, net sales in the Food Science Business totaled 14,915 million yen and operating income was 873 million yen.

(Real Estate Business)

The Real Estate Business reported net sales of 1,471 million yen and operating income of 656 million yen. Sales were steady year on year, but profits declined, mainly reflecting the implementation of maintenance work at rental facilities.

As a result, in the first nine months of the fiscal year, net sales decreased 5.3% year on year to 82,362 million yen and operating income dropped 28.3% to 3,562 million yen.

In non-operating income and expenses, the Group booked royalty income of 450 million yen based on a development and

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