Calbee : Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

Consolidated Financial Statements for the

Fiscal Year Ended March 31, 2021

April 1, 2020 to March 31, 2021

This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains forward-looking statements based on a number of assumptions and beliefs made by management in light of information currently available. Actual financial results may differ materially depended on a number of factors, including changing economic conditions, legislative and regulatory developments, delay in new product launches, and pricing and product initiatives of competitors.

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SUMMARY OF FINANCIAL STATEMENTS (consolidated)

Full Year Results for the Fiscal Year Ended March 31, 2021

Calbee, Inc.	May 13, 2021
	Stock exchange listings: Tokyo 1st section, code number 2229
URL: https://www.calbee.co.jp/en/	Contact: Koichi Kikuchi
	Senior Managing Director & CFO
	Telephone: [phone]

Representative: Shuji Ito, President & CEO, Representative Director

Scheduled date for the General Meeting of Shareholders: June 23, 2021

Scheduled date for distribution of dividends: June 24, 2021

Scheduled date for submission of the full year financial report: June 24, 2021

Availability of supplementary explanatory material : Available

Results presentation meeting: Yes (conference call for institutional investors and analysts)

1) Consolidated results for the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Consolidated Operating Results					Millions of yen, rounded down
		FY ended		FY ended
		March 31, 2020		March 31, 2021
				% change			% change
Net sales ...............................................................	255,938		2.9	266,745		4.2
Operating profit .....................................................	27,664		2.6	27,064		-2.2
Ordinary profit .......................................................	27,391		-0.1	27,522		0.5
Profit attributable to owners of parent .................	17,539		-9.7	17,682		0.8
Earnings per share (¥)..........................................	131.22			132.30
Earnings per share (diluted) (¥) ...........................	131.21			-
Return on equity (%)		11.1			10.4
Ordinary profit to total assets ratio (%)	13.1			12.1
Operating profit to sales ratio (%)	10.8			10.1

Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.

1. Comprehensive income: FY ended March 31, 2021: ¥19,750 million(32.0%) FY ended March 31, 2020: ¥14,963 million (-25.4%)
2. Share of profit (loss) of entities accounted for using equity method: FY ended March 31, 2021: -¥104 million FY ended March 31, 2020: ¥9 million

(2) Consolidated Financial Position								Millions of yen, rounded down
		As of March 31, 2020		As of March 31, 2021
Total assets..........................................................			214,967		238,978
Net assets ............................................................			169,632		182,740
Shareholders' equity/total assets (%)..................				75.9		73.4
Net assets per share (¥).......................................			1,221.19		1,312.24
Shareholders' equity: As of March 31, 2021: ¥175,369 million
As of March 31, 2020: ¥163,242 million
(3) Consolidated Cash Flows								Millions of yen, rounded down
		FY ended March 31, 2020		FY ended March 31, 2021
Cash flows from operating activities				40,449		30,450
Cash flows from investing activities				(13,462)		(32,069)
Cash flows from financing activities				(6,278)		(7,635)
Cash and cash equivalents at end of period				55,742		47,282
2) Dividends								Yen
		FY ended			FY ended		FY ending
		March 31, 2020		March 31, 2021		March 31, 2022 (forecast)
Interim period per share .....................................	0.00			0.00		0.00
Year-end dividend per share................................	50.0			50.0		52.0
Annual dividend per share ...................................	50.0			50.0		52.0
Total dividend amount (millions of yen)…………	6,696			6,696		-
Dividend payout ratio (consolidated) (%)………	38.1			37.8		38.6
Net assets to dividends ratio (consolidated) (%)	4.2			3.9		-

Notes: Total dividend amounts for FYs ended March 31, 2020 and March 31, 2021 include dividends of ¥12 million and ¥14 million, respectively, for Calbee shares held in trust

3) Consolidated forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)	Millions of yen
		% change
Net sales ...............................................................	240,000		-10.0
Operating profit .....................................................	28,000		3.5
Ordinary profit .......................................................	27,500		-0.1
Profit attributable to owners of parent .................	18,000		1.8
Earnings per share (¥)..........................................	134.69

Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.

2. Effective from the beginning of the FY March 31, 2022, the Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29),etc. Accordingly, the forecasts are the amounts after the adoption of this accounting standard.

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Notes

1. Transfers of important subsidiaries during the period (transfers of specified subsidiaries resulting in changes in the scope of consolidation): None
2. Changes in accounting policy, changes in accounting estimates, and restatements:
3. 1. Changes in accounting policies following revisions of accounting standards: None
   2. Changes in accounting policies other than 1: None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Number of outstanding shares (common stock)

		As of March 31, 2020:	As of March 31, 2021:
1.	Number of outstanding shares	133,929,800 shares	133,929,800 shares
	(including treasury shares)
2.	Number of treasury shares	254,501 shares	289,176 shares
		Fiscal year to March 31,	Fiscal year to March 31,
		2020:	2021:
3.	Average number of shares during the period	133,669,238 shares	133,652,937 shares

Note: Regarding Calbee stock held in trust as treasury stock within shareholders' equity, the number of treasury shares includes 288,265 of these shares as of March 31, 2021 and 253,590 of these shares as of March 31, 2020, and the average number of shares excludes 275,951 treasury shares during the year to March 31, 2021, and 257,959 treasury shares during the year to March 31, 2020.

(Reference) Non-consolidated results for the fiscal year ended March 31, 2021
(1)	Non-consolidated operating results				Millions of yen, rounded down
			FY ended March 31, 2020	FY ended March 31, 2021
					% change			% change
		Net sales	197,658		1.8	195,850		-0.9
		Operating profit	24,370		-1.4	23,379		-4.1
		Ordinary profit	24,433		-5.4	24,073		-1.5
		Net profit	16,210		2.4	16,640		2.7
		Earnings per share (¥)	121.28		124.51
		Earnings per share (diluted) (¥)	121.27		-
(2)	Non-consolidated financial position				Millions of yen, rounded down
			As of March 31, 2020		As of March 31, 2021
		Total assets	199,004		211,323
		Net assets	155,185		165,187
		Shareholders' equity/total assets (%)	78.0		78.2
		Net assets per share (¥)	1,160.91		1,236.06

Shareholders' equity: As of March 31, 2021: ¥165,187 million, As of March 31, 2020: ¥155,185 million

Financial Statements are not subject to audit by a certified public accountant or audit firm

Appropriate use of financial forecasts and other items

1. Forecasts, etc., recorded in this document include forward-looking statements that are based on management's estimates, assumptions and projections at the time of publication. A number of factors could cause actual results to differ materially from expectations. For further information on assumptions used in forecasts, please see Page 10- 1. Overview of Operating Results (4) Consolidated forecasts.
2. The earnings per share forecast for the fiscal year ending March 31, 2022 is calculated using 133,640,624 shares as the expected average number of shares for the period.
3. Calbee, Inc. has scheduled a financial results phone conference for institutional investors and analysts for May 13, 2021. An audio recording of the conference will be made available on our Japanese website after the conference.

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Contents
1.	Overview of operating results
	(1) Overview of business performance……………………………………………………………..…………	5
	(2) Overview of financial position………………………………………………………………………………	9
	(3) Overview of cash flows…...…………………………………………………………………………………	9
	(4) Consolidated forecasts……………………………………………………………………………………...	10
2.	Basic policy for profit distribution and dividends for fiscal year to March 2020 and 2021	11
3.	Basic approach to selection of accounting standards	11

4. Consolidated financial statements and key notes

1. Consolidated balance sheets…...…………………………………………………………………………. 12

(2) Consolidated statements of income and comprehensive income……………………………………… 14

1. Consolidated statements of changes in shareholders' equity………………………………………...... 16

(4) Consolidated statements of cash flows……………………………………………………………………	18
(5) Notes to consolidated financial statements……………………………………………………………….	20
Notes related to going concern assumption……………………………………………………………..	20
Segment information and other……………………………………………………………………………	20
Per share information……………………………………………………………………………………….	20
Subsequent events………………………………………………………………………………………….	21

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1. Overview of operating results

(1) Overview of business performance

(All comparisons are with the same period of the previous fiscal year, unless stated otherwise.)

During the FY March 2021, the global economy was extremely challenging due to the rapid worsening of the economy caused by lockdowns and other factors associated with the expansion of COVID-19 pandemic. The Japanese economy also continued to face a challenging situation, as economic activities were restricted due to the issuance of the Emergency Declaration, corporate profits deteriorated, personal consumption declined, and demand from inbound tourists plummeted. However, in the snack foods and cereal foods markets, demand for household consumption increased due to requests to refrain going out, and the market size remained firm.

In this environment, we promoted business activities based on long-term vision (the vision for 2030) and the five-yearmedium-term business plan (from FY March 2020 to FY March 2024), as well as responding to changes in demand triggered by the expansion of COVID-19 pandemic and taking measures to deal with epidemics.

In the domestic business, the expansion of COVID-19 pandemic caused delays in the procurement of imported raw materials. However, we minimized the impact on our customers by reviewing our product policies, developing and launching alternative products. We also worked to ensure a stable supply of products by responding to a sharp increase in sales due to nesting demand, by shifting production flexibly. With regard to office workers, by making mobile work a principle, we have further evolved the new ways of working that we have been pursuing in the past.

In April 2020, we acquired all of the shares of Potato Kaitsuka Co.Ltd. (hereinafter, "Potato Kaitsuka"), which is engaged in the wholesaling of sweet potatoes products and the direct sales of baked sweet potatoes and other products, as part of our efforts to establish a business in new food domains. We expanded business of sweet potatoes by leveraging the potato procurement expertise of the Calbee Group. Aiming for sustainable growth, we concluded an agreement with the government of Hiroshima Prefecture in May 2020 with the aim of constructing a new plant (commencing operations in the FY March 2025) in Hiroshima Prefecture, our birthplace. The new state-of-the-art factory will serve as a "mother factory" that is responsible for technical development through the introduction of cutting-edge technologies such as DX, and new product development in addition to the manufacture of existing products.

In the overseas business, we focused on establishing revenue-generating bases in four key regions (North America, Greater China, the United Kingdom, and Indonesia). In China, we strengthened our lineup of cereal foods and snack foods and actively promoted sales to meet rising demand for e- commerce, and promoted the penetration of the Calbee brand. In North America, we worked to integrate Warnock Food Products, Inc. (hereinafter, "Warnock"), which began consolidation in November 2019, into our management.

Consolidated net sales for the FY March 2021 increased 4.2% to ¥266,745 million due to nesting demand and the contribution by the acquisition of Potato Kaitsuka and Warnock. Operating profit decreased 2.2% to ¥27,064 million, and operating margin was 10.1%, a deterioration of 0.7 percentage points. Operating profit declined due to lower sales of high-value-added gift snack items, despite contributions of higher sales and cost reduction such as travel and transportation expenses and sales promotional expenses. Ordinary profit increased 0.5% to ¥27,522 million including foreign exchange gain of ¥452 million. Profit attributable to owners of parent increased 0.8% to 17,682 million.

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