[Delayed] Supplementary Materials: Financial Results for the Nine Months Ended September 30, 2021

Supplementary Materials:

Financial Results for the Nine Months Ended

September 30, 2021

October 29, 2021

(TSE: 2216)

Index

	Page
 Review for the Nine Months Ended September 30, 2021	- 1-4

 (Supplementary Materials 1) 【Summary of Financial Results】

- 5

• (Supplementary Materials 2)【Non-consolidated Statements of Income/Nine

	Months Ended September 30】	-	6
	(Supplementary Materials 3)【Financial Indicators FY2016－FY2021/Plan】	-	7
	(Supplementary Materials 4)【Market Trends】	-	8
	(Supplementary Materials 5)	-	9
	【Hard Candy+ Gummy Markets Trends by Business Category】
	(Supplementary Materials 6)【IR News Oct. 2020 to Sep. 2021】	-	10

Review for FY2021 Q3

(Jan. to Sep. 2021)

1

FY2021 Q3 Overview

◆Market environment

• In the nine months ended September 30, 2021（Jan.-Sep.), the candy market declined 5.1% over the previous year.

(Breakdown: Hard candy was down 9.0%, gummies were up 9.1%, tablet candy was down 13.2%, and others were down 4.5%.) *1

• Led by gummies, the candy market overall is currently on a recovery track.

◆Status of company business

• Revenue and income rose over the previous year (net sales rose 9.2%, operating income was up 200.1%, ordinary income increased 186.1%, and net income grew 205.4%).
• Candy category: Throat drops were sluggish due to the mask-wearing lifestyle, and candy in stick-shaped, compact packaging also struggled due to a continued decline in demand for candy in offices and spending on outings. Accordingly, revenue fell despite an increase in sales of products such as Kinno Milk candy, which launched a new flavor.
• Gummy category: Significant sales growth in excess of market recovery was achieved thanks to strong demand for mainstay brands such as Puré Gummy and Candemina as well as favorable reception of new products such as Marosh, which offers a new taste sensation.
• Market share increase (Jan.-Sep.; figures in brackets indicate results in previous year): Hard candy (20.4% [19.1%])*2, gummies

(17.5% [16.4%])*3	*1	(Source) INTAGE Inc. SRI+ Candy and caramel YoY change in sales amount by type
	*2	(Source) INTAGE Inc. SRI+ Hard candy
	*3	(Source) INTAGE Inc. SRI+ Gummies

2

1

Summary of FY2021 Q3 Performance

				Unit：Million yen
	FY2021 Q3		FY2020 Q3
	Actual	Actual	YoY		YoY%
Net sales	17,639	16,154	1,485	9.2%
Operating income	512	170		341	200.1%
Ordinary income	543	189		353	186.1%
Net income	435	142		293	205.4%

3

Summary of Revised Full-Year Performance

Unit：Million yen

	FY2021		FY2020		FY2021
	Revised	Actual	YoY	YoY%	Full-year forecast*2	Rate of
	forecast*1	change
Net sales	25,300	23,321	1,978	8.5%	24,700	2.4%
Operating income	1,160	836	323	38.7%	870	33.3%
Ordinary income	1,200	860	339	39.4%	900	33.3%
Net income	880	610	269	44.1%	660	33.3%
Basic earnings per	124.80	86.58	38.22	44.1%	93.60	33.3%
share (Unit: yen)

*1: Announced on Oct. 29, 2021 *2: Announced on June 24, 2021

4

2

Overview of Selling, General and Administrative Expenses in FY2021 Q3

								Unit：Million yen
	FY2021 Q3				FY2020 Q3		FY2021
	Actual	YoY	YoY%		Actual		1H Actual		Full-year forecast
Net sales	17,639	1,485	9.2%		16,154		11,640		25,300
Cost of sales	9,280	494	5.6%		8,785		6,040		-
Freight/warehousing	1,067	99	10.2%		968		686		-
costs
Sales promotion	589	119	25.3%		470		402		-
expenses
Advertising	236	(3)	(1.3) %		239		157		-
expenses
Agent fees	2,352	168	7.7%		2,184		1,556		-
Personnel expenses	2,477	186	8.2%		2,290		1,605		-
General expenses	1,124	79	7.6%		1,045		754		-
Operating income	512	341	200.1%		170		436		1,160

5

Factors of changes in OP （FY2020 Q3 VS. FY2021 Q3）

Unit: million yen

Increase factors

Decrease factors

(V) : Variable cost

(F) : Fixed cost

FY 2020 Q3 Result 170

FY 2021 Q3 Result 512

6

3