ARIAKE JAPAN : Consolidated Financial Results

Consolidated Financial Results

for the Fiscal Year 2021

(J-GAAP)

				May 13, 2021
Listed company name: Ariake Japan Co., Ltd.
Code number:	2815	URL: https://www.ariakejapan.com/	Listing exchange: Tokyo, 1st Section
Representative:	Naoki Shirakawa, President (CEO)
Contact:	Kazuhiro Fujita, General Manager, Administration Department
	TEL: [phone]
Date of annual general meeting of shareholders: June 18, 2021
Date to submit the annual securities report:	June 21, 2021
Date to start of dividends distribution:		June 21, 2021
Supplementary materials prepared: Yes

Results information meeting held: Yes (for financial analysts)

(Figures shown are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 31, 2021 (April 1, 2020-March 31, 2021)

(1) Consolidated Financial Results

(Percentage figures represent changes from the previous fiscal year.)

	Net sales		Operating income	Ordinary income	Net income attributable to
		shareholders of the parent
							company
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY2021	49,684	(5.1)	10,046	(14.8)	10,675	(10.4)	7,277	(13.1)
FY2020	52,329	(7.5)	11,789	(1.3)	11,908	(5.1)	8,375	(49.8)

Note: Comprehensive income: FY2021: ¥7,906 million (13.3%)	FY2020: ¥6,991 million (−59.4%)
		Net income per share	Fully diluted net	Return on	Ordinary income to	Operating income
		income per share	shareholders' equity	total assets	to net sales
		Yen	Yen	%	%	%
	FY2021	228.70	-	7.6	9.9	20.2
	FY2020	263.21	-	9.2	11.3	22.5

Reference: Investment profit/loss on equity method: FY2021: ¥ - millionFY2020: ¥ - million

(2) Consolidated Financial Position

		Total assets	Net assets	Equity ratio	Net assets per share
		Millions of yen	Millions of yen	%	Yen
	FY2021	111,681	98,867	87.9	3,086.18
	FY2020	104,489	93,432	88.9	2,917.83
	Reference: Equity capital:	FY2021: ¥98,203 million		FY2020: ¥92,847 million

(3) Consolidated Cash Flows

	Cash flows from operating	Cash flows from investing	Cash flows from financing	Cash and cash equivalents
	activities	activities	activities	at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
FY2021	11,015	4,276	(2,483)	40,877
FY2020	1,977	8,971	(2,476)	27,904

2. Dividends

		Dividends per share		Total dividends	Dividends	Dividends on
						payout ratio	shareholders'
	1Q-end	2Q-end	3Q-end	Year-end	Annual	(Annual)	equity ratio
	(Consolidated)
							(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
FY2020	-	20.00	-	57.00	77.00	2,450	29.3	2.7
FY2021	-	20.00	-	57.00	77.00	2,450	33.7	2.6
FY2022 (forecast)	-	20.00	-	57.00	77.00		30.2

Ariake Japan Co., Ltd. (2815) Consolidated Financial Results for the Fiscal Year 2021

3. Forecast of the Consolidated Financial Results for the Year Ending March 31, 2022 (April 1, 2021-March 31, 2022)

(Full year percentage figures represent changes from the previous fiscal year, and first half figures represent the rates of changes from the same period of the previous year.)

	Net sales		Operating income	Ordinary income	Net income attributable	Net income
		to shareholders of the
		per share
								parent company
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
First half year	25,521		12.6	5,360	25.0	5,360	16.2	3,564	12.0	112.00
Full year	54,300		9.3	11,800	17.5	11,800	10.5	8,100	11.3	254.55

Ariake Japan Co., Ltd. (2815) Consolidated Financial Results for the Fiscal Year 2021

* Notes

1. Significant Changes in Subsidiaries during the Year under Review (Changes in specified subsidiaries resulting in change of scope of consolidation): None

Newly included: None

(Company name:

)

Removed: None

(Company name: )

1. Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Revisions
2. 1. Changes in accounting policies associated with revisions of accounting standards, etc.: None

2)	Changes other than those included in 1):	None
3)	Changes in accounting estimates:	None
4)	Restatement of revisions:	None

(3) Number of Issued Shares (Common Stock)

1. Number of issued shares as of the period-end (including treasury shares)
2. Number of treasury shares as of the period-end
3. Average number of shares for the period

As of March 31,	32,808,683 shares	As of March 31,	32,808,683 shares
2021:		2020:
As of March 31,	988,181 shares	As of March 31,	987,855 shares
2021:		2020:
FY 2021:	31,820,688 shares	FY 2020:	31,820,980 shares

(Reference) Summary of Non-consolidated Financial Results

1. Financial Results for the Year Ended March 31, 2021 (April 1, 2020-March 31, 2021)

(1) Non-consolidated Financial Results

						(Percentage figures represent changes from the previous fiscal year.)
	Net sales		Operating income	Ordinary income	Net income
	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
FY2021	38,563		(6.8)	7,407		(17.7)	8,116	(12.1)	5,578		(15.9)
FY2020	41,371		5.6	8,998		8.7	9,233	2.3	6,633		(64.0)
	Net income per share	Fully diluted net income
	per share
			Yen			Yen
FY2021			175.30			-
FY2020			208.45			-

(2) Non-consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
FY2021	103,011	93,156	90.4	2,927.55
FY2020	97,837	89,657	91.6	2,817.57

Reference: Equity capital: FY2021: ¥93,156 million FY2020: ¥89,657 million

2. Forecast of the Non-consolidated Financial Results for the Year Ending March 31, 2022 (April 1, 2021-March 31, 2022)

(Full year percentage figures represent changes from the previous fiscal year, and first half figures represent the rates of changes from the same period of the previous year.)

	Net sales		Ordinary income		Net income		Net income per share
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Yen
First half year	19,000	5.9	4,300		15.9	3,000		15.8	94.28
Full year	41,500	7.6	8,800		8.4	6,100		9.4	191.70

• These financial results are outside the scope of the audit by certified public accountants or auditing firms.
• Explanation regarding the appropriate use of forecast of consolidated financial results and other special instructions
  Descriptions regarding the future, including the financial outlook contained in this material, are based on certain information currently available to the Company and particular assumptions, which are, at the discretion of the Company, deemed reasonable and actual financial results may significantly vary due to various factors.

Ariake Japan Co., Ltd. (2815) Consolidated Financial Results for the Fiscal Year 2021

Contents
1.Overview of Financial Results, etc........................................................................................................................................	2
(1)Overview of Financial Results for the FY2021 ..............................................................................................................	2
(2)Overview of Financial Position for the FY2021 .............................................................................................................	3
(3)Overview of Cash Flows in the FY2021.........................................................................................................................	3
(4)Future Outlook ................................................................................................................................................................	4
2.Basic Approach to the Selection of Accounting Standards ...................................................................................................	5
3.Consolidated Financial Statements and Major Notes............................................................................................................	6
(1)Consolidated Balance Sheets ..........................................................................................................................................	6
(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income......................................	8
(Consolidated Statements of Income).............................................................................................................................	8
(Consolidated Statements of Comprehensive Income) ...................................................................................................	9
(3)Consolidated Statements of Changes in Equity ............................................................................................................	10
(4)Consolidated Statements of Cash Flows .......................................................................................................................	12
(5)Notes on the Consolidated Financial Statements ..........................................................................................................	13
(Notes on the Going Concern Assumption) ..................................................................................................................	13
(Basic Important Matters to Prepare the Consolidated Financial Statements)..............................................................	13
(Consolidated Balance Sheets) .....................................................................................................................................	16
(Consolidated Statements of Income)...........................................................................................................................	17
(Consolidated Statements of Comprehensive Income) .................................................................................................	18
(Consolidated Statements of Changes in Equity) .........................................................................................................	19
(Consolidated Statements of Cash Flows) ....................................................................................................................	20
(Securities)....................................................................................................................................................................	21
(Derivative Transactions)..............................................................................................................................................	23
(Retirement Benefits)....................................................................................................................................................	23
(Segment Information, etc.)..........................................................................................................................................	26
(Information on the Related Parties).............................................................................................................................	28
(Per Share Information) ................................................................................................................................................	30
(Important Subsequent Events).....................................................................................................................................	30
4.Non-consolidated Financial Statements and Major Notes...................................................................................................	31
(1)Non-consolidated Balance Sheets .................................................................................................................................	31
(2)Non-consolidated Statements of Income.......................................................................................................................	33
(3)Non-consolidated Statements of Changes in Equity .....................................................................................................	35
5.Other....................................................................................................................................................................................	37

1

Ariake Japan Co., Ltd. (2815) Consolidated Financial Results for the Fiscal Year 2021

1. Overview of Financial Results, etc.

(1) Overview of Financial Results for the FY2021

(Consolidated Financial Results)

					(Millions of yen)
				Net income
	Net sales	Operating income	Ordinary income	attributable to	Net income per
	shareholders of the	share (yen)
				parent company
FY2021	49,684	10,046	10,675	7,277	228.70
FY2020	52,329	11,789	11,908	8,375	263.21
Growth Rate	(5.1%)	(14.8%)	(10.4%)	(13.1%)	-

(Non-consolidated Financial Results)

					(Millions of yen)
	Net sales	Operating income	Ordinary income	Net income	Net income per
	share (yen)
FY2021	38,563	7,407	8,116	5,578	175.30
FY2020	41,371	8,998	9,233	6,633	208.45
Growth Rate	(6.8%)	(17.7%)	(12.1%)	(15.9%)	-

During the fiscal year ended March 31, 2021, the Japanese economy continued to struggle with the COVID-19 pandemic, but showed signs of improvement as economic activities gradually resumed after the nation's first state of emergency was lifted. However, the situation remains uncertain amid the resurgence of COVID-19.

Under such circumstances, we reinforced hygiene management at our domestic and overseas sites to prevent infections and implemented alternative work arrangements. Especially at our overseas locations, we operated our business in compliance with national and local government guidelines of each country.

Against this backdrop, Ariake Japan Co., Ltd. (the "Company") and its Group companies (collectively, the "Ariake Group") have been striving to understand customer needs early on, expand their existing businesses throughout the world, and actively develop new businesses. In this way, the Ariake Group endeavors, as a leading manufacturer in the field of natural seasonings and also as a global enterprise, to fulfill its commitments to food safety, good health, and better taste.

As a result of these efforts, the Group and the Company were able to record the following earnings for the fiscal year under review.

The Company's net sales decreased by 6.8% (¥2,807 million) year on year, to ¥38,563 million, resulting from our steady sales and marketing efforts focusing on a "customer-first" approach.

Sales of subsidiaries increased by 1.5% year on year.

Therefore, consolidated net sales for the fiscal year under review decreased by 5.1% (¥2,645 million) year on year to ¥49,684 million.

The Company's operating income decreased by 17.7% (¥1,591 million) year on year to ¥7,407 million, largely due to decreased sales and a failure to absorb fixed costs.

Consolidated operating income decreased by 14.8% (¥1,743 million) year on year to ¥10,046 million.

The Company's ordinary income decreased by 12.1% (¥1,116 million) year on year to ¥8,116 million. This was mainly attributable to a ¥390 million increase in foreign exchange gains compared to the previous year.

Consolidated ordinary income decreased by 10.4% (¥1,233 million) year on year to ¥10,675 million. Net income for the Company decreased by 15.9% (¥1,054 million) year on year to ¥5,578 million.

Net income attributable to shareholders of the parent company decreased by 13.1% (¥1,098 million) year on year to ¥7,277 million.

The Ariake Group has only one reportable segment, so information on segment performance is not reported.

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