Calbee : Financial Results for Fiscal Year Ended March, 2024

Consolidated Financial Statements for the

Fiscal Year Ended March 31, 2024

April 1, 2023 to March 31, 2024

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, 2024

Calbee, Inc.	May 9, 2024
	Stock exchange listings: Prime Market of Tokyo, code number 2229
URL: https://www.calbee.co.jp/en/	Contact: Kazuhiro Tanabe
	Executive Officer & CFO
	Telephone: [phone]

Representative: Makoto Ehara, President & CEO, Representative Director

Scheduled date for the General Meeting of Shareholders: June 25, 2024

Scheduled date for distribution of dividends: June 26, 2024

Scheduled date for submission of the full year financial report: June 25, 2024

Availability of supplementary explanatory material : Available

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

1) Consolidated results for the fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)

(1) Consolidated Operating Results				Millions of yen, rounded down
	FY ended		FY ended
	March 31, 2023		March 31, 2024
			% change			% change
Net sales	279,315		13.8	303,027		8.5
Operating profit	22,233		(11.5)	27,304		22.8
Ordinary profit	23,460		(12.9)	31,155		32.8
Profit attributable to owners of parent	14,772		(18.2)	19,886		34.6
Earnings per share (¥)	115.16			159.22
Earnings per share (diluted) (¥)	-			-
Return on equity (%)	8.5			10.9
Ordinary profit to total assets ratio (%)	9.9			11.7
Operating profit to sales ratio (%)	8.0			9.0

Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year. 2. Comprehensive income: FY ended March 31, 2024: ¥26,373million (up 46.9%)

FY ended March 31, 2023: ¥17,953 million (down 16.9%)

4. Share of profit (loss) of entities accounted for using equity method: FY ended March 31, 2024: ¥17 million FY ended March 31, 2023: ¥23 million

(2) Consolidated Financial Position				Millions of yen, rounded down
	As of March 31, 2023		As of March 31, 2024
Total assets	239,095			292,158
Net assets	182,686			201,086
Shareholders' equity/total assets (%)	72.8			65.6
Net assets per share (¥)	1,393.74			1,535.49
Shareholders' equity: As of March 31, 2024: ¥191,751 million
As of March 31, 2023: ¥174,112 million
(3) Consolidated Cash Flows				Millions of yen, rounded down
	FY ended March 31, 2023		FY ended March 31, 2024
Cash flows from operating activities	19,310			24,350
Cash flows from investing activities	(20,329)			(35,307)
Cash flows from financing activities	(20,004)			16,850
Cash and cash equivalents at end of period	30,292			37,718
2) Dividends				Yen
	FY ended	FY ended	FY ending
	March 31, 2023	March 31, 2024	March 31, 2025 (forecast)
Interim period per share	0.00	0.00	0.00
Year-end dividend per share	52.0	56.0	58.0
Annual dividend per share	52.0	56.0	58.0
Total dividend amount (millions of yen)…………	6,508	7,009	-
Dividend payout ratio (consolidated) (%)………	45.2	35.2	40.2
Net assets to dividends ratio (consolidated) (%)	3.8	3.8	-

Note: Total dividend amounts for FYs ended March 31, 2023 and March 31, 2024 include dividends of ¥12 million and ¥16 million, respectively, for Calbee shares held in trust

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(Reference) Non-consolidatedresults for the fiscal year ended March 31, 2024

(1) Non-consolidatedoperating results

9,005,241 shares9,050,500 shares

Fiscal year to March 31, Fiscal year to March 31,

2023:2024:

3. Average number of shares during the period 128,274,133 shares 124,899,573 shares

Note: Regarding Calbee stock held in trust as treasury stock within shareholders' equity, the number of treasury shares includes 288,055 of these shares as of March 31, 2024 and 242,865 of these shares as of March 31, 2023, and the average number of shares excludes 267,811 treasury shares during the year to March 31, 2024, and 253,153 treasury shares during the year to March 31, 2023.

1. Number of outstanding shares (including treasury shares)

2. Number of treasury shares

As of March 31, 2023:

133,929,800 shares

Millions of yen, rounded down

As of March 31, 2024:

133,929,800 shares

Notes

3) Consolidated forecasts for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)

Millions of yen

		% change
Net sales	320,000	5.6
Operating profit	28,900	5.8
Ordinary profit	28,000	(10.1)
Profit attributable to owners of parent	18,000	(9.5)
Earnings per share (¥)	144.14

1. Transfers of important subsidiaries during the period (transfers of specified subsidiaries resulting in changes in the scope of consolidation): Yes
   Excluded companies: 1 (Calbee North America, LLC)
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)

	FY ended March 31, 2023	FY ended March 31, 2024
Net sales			% change			% change
186,677		8.6	204,346		9.5
Operating profit	17,941		(16.6)	23,117		28.8
Ordinary profit	20,294		(14.3)	27,008		33.1
Net profit	13,896		(32.7)	23,613		69.9
Earnings per share (¥)	108.33		189.06
Earnings per share (diluted) (¥)	-		-

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

(2) Non-consolidated financial position		Millions of yen, rounded down
		As of March 31, 2023	As of March 31, 2024
	Total assets	207,344	256,719
	Net assets	162,021	179,347
	Shareholders' equity/total assets (%)	78.1	69.9
	Net assets per share (¥)	1,296.95	1,436.17

Shareholders' equity: As of March 31, 2024: ¥179,347 million, As of March 31, 2023: ¥162,021 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 9 Overview of Operating Results (4) Consolidated forecasts.
2. The earnings per share forecast for the fiscal year ending March 31, 2025 is calculated using 124,879,300 shares as the expected average number of shares for the period.
3. Calbee, Inc. has scheduled a financial results conference for institutional investors and analysts for May 9, 2024. A video 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………………………………………………………………………………	7
	(3) Overview of cash flows…...…………………………………………………………………………………	7
	(4) Consolidated forecasts……………………………………………………………………………………...	9
2.	Basic policy for profit distribution and dividends for fiscal year to March 2024 and 2025	9
3.	Basic approach to selection of accounting standards	9

4. Consolidated financial statements and key notes

1. Consolidated balance sheets…...…………………………………………………………………………. 10

(2) Consolidated statements of income and comprehensive income……………………………………… 12

1. Consolidated statements of changes in shareholders' equity………………………………………...... 14
2. Consolidated statements of cash flows…………………………………………………………………… 16
3. Notes to consolidated financial statements………………………………………………………………. 18 Notes related to going concern assumption…………………………………………………………….. 18 Segment information and other…………………………………………………………………………… 18 Per share information………………………………………………………………………………………. 18 Subsequent events…………………………………………………………………………………………. 18

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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 fiscal year under review, while the outlook for the world economy remained uncertain due to the prolonged Russia-Ukraine conflict, geopolitical risks such as issues in the Middle East, and the economic downturn in China, there were also positive signs, including the steady growth of the US economy. In Japan's economy, although costs remained high due to the continued depreciation of the yen, economic normalization has progressed due to the downgrading of COVID-19 and the Bank of Japan's having transitioned away from its negative interest rate policy at the beginning of 2024.

Under this business environment, and in response to soaring raw material costs, Calbee Group continued to implement price and content revisions in Japan from last year. Based on the Vision for 2030 and Growth Strategy we announced in February 2023, we advanced business structure reform towards the next stage of our growth with results exceeding guidance. Overseas, while responding to the effects of global inflation, mainly in Europe and the US, and weakening business confidence in China, we worked to expand our business in other regions.

In the domestic business, after implementing price and content revisions we strove to effect an early sales recovery, and worked to increase profits by raising sales volume through continuous marketing activities and by capturing travel demand. We also made steady progress in increasing production capacity by expanding production lines for mainstay products and in the construction of the new Setouchi Hiroshima Factory, which is scheduled to begin operation in the fiscal year ending March 2025.

In the overseas business, while responding to changes in the business environment in North America and Greater China we worked to expand business in other regions. In North America, while improving the profitability of our contract manufacturing business, we strengthened the sales structure of mainstay brand Harvest Snaps and brands of Japanese origin and expanded sales to major local retailers. In Greater China, in response to growing consumer frugality and a decline in sales due to the tightening of customs regulations on mainstay snacks related to an issue with treated water, we have begun pursuing local production through manufacturing outsourcing and import substitution from surrounding regional bases. In other regions, we expanded our business by launching new products and increasing production capacity, primarily in the UK and Indonesia.

As part of our sustainability management efforts, we promoted the calculation of GHG emissions at overseas group companies through a project structure, while simultaneously confirming the current situation regarding water, palm oil, paper, and plastic. In Japan, in line with the roadmap established last year in the Ministry of the Environment's Model Project for Supporting Achievement of the Decarbonization Targets of the Entire Supply Chains, we went beyond just our own reductions to identify emissions from potatoes (a project supported by the Ministry of Agriculture, Forestry and Fisheries), a Scope 3 Category 1 raw material, conduct interviews with contracted farmers, etc. Regarding other raw materials, we have strengthened cooperation as we determine the current situation through supplier assessments. Based on the reaffirmed materialities of biodiversity and human rights issues, we are preparing to disclose TNFD information in the fall of 2025. We have also developed a group environmental policy and human rights policy, signed the United Nations Global Compact, and expanded our commitments globally.

Consolidated net sales for the fiscal year under review were ¥303,027 million (up 8.5%). In the domestic business, sales rose on steady capture of demand in addition to the effect of price and content revisions, the resolution of marketing constraints from the potato shortage in the first half of the previous year, increasing demand for gift products due to a recovery in people flows, marketing to strengthen the brand, and marketing activities and added production capacity. In the overseas business, sales increased as slumps in North America and Greater China were offset by sales in other regions including the UK and Indonesia.

Operating profit was ¥27,304 million (up 22.8%), and operating margin was 9.0%, an increase of 1.1 percentage points. In the domestic business, although raw material prices continued to rise

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throughout the year, this was offset by price and content revisions, and profit increased on sales volume growth. In addition, the overseas business achieved record high profits. Ordinary profit was ¥31,155 million (up 32.8%) due to the recording of foreign exchange gains on the depreciation of the yen in non-operating income, and profit attributable to owners of parent was ¥19,886 million (up 34.6%).

Results by business are as follows.

Millions of yen, rounded down

		FY ended	FY ended
		March 31, 2023	March 31, 2024
		Amount	Amount	Growth (%)
Domestic production and sale of snack	207,116	229,887	＋11.0
and other foods business
	Domestic snack foods	194,031	214,642	＋10.6
	Domestic cereals	24,210	26,194	＋8.2
	Domestic, others	13,729	15,565	＋13.4
	Deduction of rebates, etc.	(24,854)	(26,515)	－
Overseas production and sale of snack	72,198	73,140	＋1.3
and other foods business
Total, production and sale of snack and	279,315	303,027	＋8.5
other foods business

• Sales of "Domestic snack foods", "Domestic cereals" and "Domestic, others" are before deduction of rebates, etc.

Production and sale of snack and other foods business

Sales in the production and sale of snack and other foods business increased on growth in both the domestic and overseas businesses.

Domestic production and sale of snack and other foods business

・Domestic snack foods:

Domestic snack foods sales increased. Sales by product are as follows.

Millions of yen, rounded down

	FY ended	FY ended
	March 31, 2023	March 31, 2024
	Amount	Amount	Growth (%)
Potato Chips	90,932	98,274	＋8.1
Jagarico	39,990	45,353	＋13.4
Snack food products with new value /	63,108	71,014	＋12.5
other snacks
Total, domestic snack foods	194,031	214,642	＋10.6

• Net sales by product are before deduction of rebates, etc.
• The category "Snack food products with new value / other snacks" was renamed "Other snacks" from the current period.

• Sales of Potato Chips increased, driven mainly by sales of regular items such as Usu-Shio-Aji and Kataage Potato. This was due to a stable supply of raw materials from large potato harvests, continuous marketing, and successful related sales activities.
• Sales of JagaRico increased as demand remained strong for regular products due to a recovery in people flows and increased production capacity. The launch of new product The Skinny JagaRico Salad also contributed.
• Sales of other snacks increased due to significant growth in gift snack items (Jaga Pokkuru, etc.) related to an increase in tourists in Japan. There were also positive impacts from steady sales of flour-based and corn/bean-based snacks and higher sales of Kappa Ebisen on the 60th anniversary of its launch.

・Domestic cereals:

Sales of domestic cereals were ¥26,194 million (up 8.2%) due to the success of sales promotion activities such as an increased volume campaign and a project product named Furugra Black Thunder

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Flavor from the second half of the fiscal year, driving increased demand.

・Domestic, others:

Sales in other domestic businesses were ¥15,565 million (up 13.4%), on strong sales in the wholesale sweet potato business.

Overseas production and sale of snack and other foods business

Sales increased in the overseas production and sale of snack and other foods business.

Sales by region are as follows.

Millions of yen, rounded down

	FY ended		FY ended
	March 31, 2023		March 31, 2024
				Growth on
	Amount	Amount	Growth (%)	local currency
				basis (%)
North America	22,228	23,473	＋5.6	(1.3)
Greater China	23,405	18,568	(20.7)	(23.3)
Other regions	36,227	40,411	＋11.6	＋4.3
Deduction of rebates, etc.	(9,662)	(9,313)	－	－
Total, overseas production
and sale of snack and other	72,198	73,140	＋1.3	(4.7)
foods business

• Greater China: China and Hong Kong
• Other regions: United Kingdom, Indonesia, South Korea, Thailand, Singapore and Australia
• Net sales by region are before deduction of rebates, etc.

・In North America, while sales of bean-based snack Harvest Snaps and brands of Japanese origin such as Kappa Ebisen and JagaRico grew due to expanded distribution, overall sales decreased on a local currency basis due to a decline in snack foods contract manufacturing sales.

・In Greater China, sales decreased amid sluggish sales to retail stores and via e-commerce channels due to deteriorating business confidence and tightened customs regulations.

・In Other regions, sales increased due to factors such as business expansion in the UK and Indonesia, throughout the fiscal year. In the UK, sales rose on expanded distribution of Seabrook brand products and the launch of new products, and in Indonesia, sales rose due to increased production capacity for dough snacks and higher sales overall.

(2) Overview of financial position

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

Total assets as of March 31, 2024 increased by ¥53,063 million to ¥292,158 million, mainly due to increases in property, plant and equipment as well as accounts receivable-trade. The main reasons for the increase in property, plant and equipment were the construction of the new Setouchi Hiroshima Factory and new JagaRico manufacturing facilities. The increase in accounts receivable-trade was due to delayed collection until the following month as the last day of March was a bank holiday.

Liabilities increased by ¥34,663 million to ¥91,072 million on an increase in long-term borrowings.

Net assets increased by ¥18,399 million to ¥201,086 million due to an increase in retained earnings.

As a result, the shareholders' equity ratio was 65.6%, down 7.2 percentage points.

(3) Overview of cash flow

Cash and cash equivalents as of March 31, 2024 were ¥37,718 million, an increase of ¥7,426 million.

Cash flows from operating activities

Operating activities resulted in a net cash inflow of ¥24,350 million, an increase of ¥5,039 million. This was mainly due to an increase in profit before income taxes.

Cash flows from investing activities

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Investing activities resulted in a net cash outflow of ¥35,307 million, an increase of ¥14,977 million, mainly due to a decrease in proceeds from the redemption of securities and an increase in expenditures for the purchase of property, plant and equipment.

Cash flows from financing activities

Financing activities resulted in a net cash inflow of ¥16,850 million, an increase of ¥36,855 million, mainly due to a net increase in long-term borrowings and a decrease in expenditures for the acquisition of treasury stock.

Information pertaining to financial resources and capital liquidity

• Developments in capital requirements

Calbee Group's capital requirements for operating activities include expenditures for costs related to manufacturing, such as raw materials, labor and production expenses, and for sales activities, such as selling, labor, distribution, etc. Expenditures for investing activities are primarily for capital investment and growth investment and expenditures for financing activities are primarily for capital requirements related to the payment of dividends by the parent company.

In response to these capital requirements, we plan to allocate cash flows from operating activities, cash on hand, and borrowings.

Details of capital requirements

Growth investment: Capital investment for growing domestic and overseas business, investment in new areas, M&A for strengthening overseas bases, etc.

Efficiency investment: Support for ESG, capital investment in areas including automation/labor- saving, to raise productivity

Shareholder returns: Aim for total return ratio over 50% and DOE 4% on a consolidated basis

The status of cash outlays as of the end of the fiscal year under review is as follows.

			Millions of yen, rounded down
	FY ended	3-year plan		Progress (%)
	March 31, 2024
Growth investment	10,779	80,000		13.5
Efficiency investment	22,118	60,000		36.9
Shareholder returns	6,504	25,000		26.0
Total	39,402	165,000		23.9

・Fund-raising methods

In principle, Calbee Group raises funds by using borrowings from financial institutions in addition to cash provided by operating activities. We and our domestic consolidated subsidiaries have introduced a cash management system (CMS) to centrally manage funds within the Group, thereby centrally managing surplus funds, securing liquidity and improving funding efficiency. In addition, Calbee has entered into overdraft agreements with several financial institutions with the aim of further supplementing our liquidity, and we recognize that we have sufficient liquidity to fund our business operations.

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(4) Consolidated forecasts

Under our 2030 vision "Next Calbee & Beyond," Calbee Group has set forth the "Change 2025" growth strategy (from the fiscal year ending March 2024 to the fiscal year ending March 2026), positioning this as a period of structural reform. We will continue to work to establish a foundation for future growth.

In the fiscal year ending March 31, 2025, a difficult economic environment is expected due to continued soaring raw material prices, new cost-increasing factors such as rising logistics costs accompanying regulatory changes, and moves to transition from a policy of monetary easing. The economy is expected to continue to recover, albeit at a gradual pace, due to increased corporate appetite for capital investment and the first significant wage increases in 30 years.

Under these circumstances, in the domestic business, we will strengthen our profitability by implementing price and content revisions in response to cost increases as in the previous fiscal year, strengthening the brand by promoting Calbee's unique competitive advantages, improving our earnings structure by strengthening our gift snack business, and optimizing our value chain based on DX. In the overseas business, we will invest in each region in line with changes in the business environment and expand our business in each region, including the key regions of North America and Greater China.

Furthermore, by investing in human resources from a medium- to long-term perspective as the foundation that supports our business, and making investments to tackle social and environmental issues (i.e., through sustainability management), we will strengthen our base for sustainable growth.

As a result, consolidated net sales for the year ending March 31, 2025 are forecast to be ¥320,000 million (up 5.6%), operating profit to be ¥28,900 million (up 5.8%), and profit attributable to owners of parent to be ¥18,000 million (down 9.5%) as foreign exchange gains recorded as non-operating income in the previous fiscal year are not expected to occur in the current fiscal year.

The main exchange rates used as the basis for this forecast are 1USD=¥142, 1RMB=¥19.9.

1. Basic policy for profit distribution and dividends for the fiscal years ended March 31, 2024 and March 31, 2025
   Calbee recognizes the distribution of profits to our shareholders as a top management priority. The cash flows generated over the three-year period from fiscal year ended March 31, 2024 to fiscal year ending March 31, 2026 will be allocated to growth-oriented investments, efficiency-oriented investments, and shareholder returns after utilizing cash on hand and borrowings. For shareholder returns, we aim to stably increase dividends with a total return ratio of 50% and more and DOE of 4%.
   We plan to pay a fiscal year-end dividend of ¥56 per share, for a consolidated dividend payout ratio of 35.2%. This will be discussed at the 75th Annual General Meeting of Shareholders to be held on June 25, 2024.
   For the fiscal year ended March 31, 2025, we plan to pay an annual dividend of ¥58 per share with a consolidated dividend payout ratio of 40.2%.
   As prescribed by Article 454 Clause 5 of the Companies Act, the Articles of Incorporation stipulate that Calbee is able to pay interim dividends. However, Calbee, will pay dividends once per annum upon review of certain factors including the annual results.
2. Basic approach to selection of accounting standards
   With the aims of enhancing management of the business and enabling international comparison of financial information in capital markets through the unification of accounting standards, Calbee is considering the adoption of International Financial Reporting Standards (IFRS).

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4. Consolidated financial statements and key notes

1. Consolidated balance sheets

Millions of yen, rounded down

		As of March 31, 2023	As of March 31, 2024
Assets
Current assets
Cash and deposits	32,167	44,295
Notes receivable - trade	715	922
Accounts receivable	36,405	53,196
Inventories	23,352	22,208
Other	6,439	7,309
Allowance for doubtful accounts	(110)	(78)
Total current assets	98,970	127,853
Non-current assets
Property, plant and equipment
Buildings and structures	80,247	86,754
Accumulated depreciation	(45,673)	(48,084)
Buildings and structures, net	34,574	38,670
Machinery, equipment and vehicles	120,702	131,794
Accumulated depreciation	(88,944)	(95,294)
Machinery, equipment and vehicles, net	31,758	36,500
Land	16,330	16,265
Leased assets	849	980
Accumulated depreciation	(368)	(446)
Leased assets, net	480	534
Construction in progress	16,796	29,851
Other	6,392	7,020
Accumulated depreciation	(4,798)	(5,185)
Other, net	1,593	1,835
Total property, plant and equipment	101,533	123,657
Intangible assets	23,222	22,650
Goodwill
Other	2,709	2,620
Total intangible assets	25,932	25,271
Investments and other assets
Investment securities	2,597	3,183
Long-term loans receivable	100	－
Deferred tax assets	4,955	5,408
Retirement benefit asset	3,434	4,505
Other	1,572	2,280
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets	12,658	15,376
Total non-current assets	140,124	164,305
Total assets		239,095	292,158

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