Morinaga : Notice of Revision of Consolidated Financial Forecasts

Press Release

Company name: Morinaga & Co., Ltd.

August 9, 2017

Representative: Toru Arai, Representative Director, President

(Code: 2201; First Section of Tokyo Stock Exchange) Contact: Ayako Kunichika, General manager, Corporate

Communication Dept. (TEL: [phone])

Notice of Revision of Consolidated Financial Forecasts

Morinaga & Co., Ltd. (the "Company") hereby announces that its consolidated financial forecasts announced on May 12, 2017, have been revised as described below in light of trends in its recent business performance and other factors.

1. Revision of the consolidated financial forecasts for the first six months of the fiscal year ending March 31, 2018 (from April 1 to September 30, 2017)

   Net sales	Operating income	Ordinary income	Profit attributable to owners of parent	Net income per share
   Previously announced forecast (A)	Million yen	Million yen	Million yen	Million yen	Yen
   	103,500	10,800	11,100	7,700	147.98
   Revised forecast (B)	106,000	12,100	12,500	8,500	163.35
   Change (B - A)	2,500	1,300	1,400	800
   Percentage change	2.4	12.0	12.6	10.4
   Ref. consolidated results of the first six months of the previous fiscal year (ended March 31, 2017)	99,005	11,213	11,564	7,828	150.43

2. Revision of the consolidated financial forecasts for the fiscal year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)

   Net sales	Operating income	Ordinary income	Profit attributable to owners of parent	Net income per share
   Previously announced forecast (A)	Million yen	Million yen	Million yen	Million yen	Yen
   	205,000	18,000	18,500	12,600	242.14
   Revised forecast (B)	207,500	19,300	19,900	13,400	257.52
   Change (B - A)	2,500	1,300	1,400	800
   Percentage change	1.2	7.2	7.6	6.3
   Ref. consolidated results of the previous fiscal year (ended March 31, 2017)	199,479	17,612	18,325	11,115	213.60

3. Reason for the revisions

In the consolidated results for the first three months of the fiscal year under review, the Company achieved significant growth in its income, primarily as a result of increased net sales in the mainstay Food Manufacturing business and an improved cost-of-sales ratio.

Considering this, the consolidated results for the first six months of the fiscal year under review are likely to exceed the financial forecasts previously announced. Consequently, the Company has revised its forecasts for the first six months and full year of the fiscal year under review.

* The financial forecasts presented in this document were prepared based on information available to the Company at the time of the announcement, which may differ materially from the actual results due to various factors arising in the future.