Megmilk Snow Brand : 【Delayed】Supplementary Information Six months ended September 30, 2021 (April 1, 2021 to September 30, 2021)

Supplementary Information

Six months ended September 30, 2021 (April 1, 2021 to September 30, 2021)

Table of Contents for Attachments

Front cover	Page
1.	Quarterly Consolidated Statements of Income (Result/Forecast)	1
2.	Quarterly Consolidated Sales and Operating Profit by Product of Each Segment (Result/Forecast)	2
3.	Causes of Net Changes in Consolidated Operating Profit (Result/Forecast)	4
4.	Quarterly Consolidated Balance Sheets (Result)	5
5.	Quarterly Consolidated Statements of Cash Flows (Result)	5
6.	Other Management Indicators (Result/Forecast)	6
7.	Financial Performance Data from FY2016 to FY2020	7

Earnings forecasts contained in this supplementary material are forward-looking statements and include uncertain factors. Please note that actual results may differ from forecasts due to various unknown or unpredictable factors.

This material has not been prepared to solicit investment.

This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original,

the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

MEGMILK SNOW BRAND Co., Ltd.

1. Quarterly Consolidated Statements of Income (Result/Forecast)

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

						Result for the year ending March 31, 2022 (FY2021)						【Forecast】 Year ending March 31, 2022 (FY2021)
		1st quarter-end			2nd quarter-end			3rd quarter-end			4th quarter-end		2nd quarter-end		Full year
				(cumulative)			(cumulative)			(cumulative)		(cumulative)
	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	Amount	Net change	Amount	Net change
	2020	2021			2020	2021			2020	2021			2020	2021
	Amount	YOY	Amount	YOY	Amount	YOY	Amount	YOY		Amount		YOY		Amount	YOY
			(%)			(%)			(%)			(%)			(%)		(%)
Net sales	1,398	1,428	29	2.1	2,829	2,869	39	1.4	4,244				5,545				2,880	50		1.8	5,700	154	2.8
Cost of sales	1,175	1,180	4	0.4	2,375	2,391	16	0.7	3,555				4,651
Vs. Sales (%)	84.1	82.7			84.0	83.4			83.8				83.9
Selling, general and	172	182	9	5.7	343	355	11	3.5	519				695
administrative expenses
Vs. Sales (%)	12.3	12.8			12.1	12.4			12.2				12.5
Operating profit	50	65	14	29.8	110	122	11	10.1	169				197				108	(2)		(2.6)	205	7	3.6
Vs. Sales (%)	3.6	4.6			3.9	4.3			4.0				3.6				3.8				3.6
Non-operating income	6	9	2	32.4	14	15	0	3.7	22				30
Non-operating expenses	2	2	(0)	(18.5)	5	4	(1)	(20.4)	7				11
Ordinary profit	54	72	17	32.3	119	132	12	10.8	184				216				114	(5)		(4.8)	215	(1)	(0.8)
Vs. Sales (%)	3.9	5.1			4.2	4.6			4.3				3.9				4.0				3.8
Extraordinary income	0	0	(0)	(57.5)	0	0	(0)	(65.4)	0				31
Extraordinary loss	7	3	(3)	(50.4)	14	9	(5)	(37.2)	18				36
Profit before income taxes	47	68	21	45.0	104	123	18	17.6	166				211
Vs. Sales (%)	3.4	4.8			3.7	4.3			3.9				3.8
Income taxes	15	20	4	31.0	33	36	3	10.3	50				61
Profit (loss) attributable to non-	0	0	0	183.7	(0)	0	1	－	0				0
controlling interests
Profit attributable to owners of	31	48	16	51.1	71	85	13	19.2	115				149				68	(3)		(5.5)	125	(24)	(16.2)
parent
Vs. Sales (%)	2.3	3.4			2.5	3.0			2.7				2.7				2.4				2.2

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. All figures in the above table are prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

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2. Quarterly Consolidated Sales and Operating Profit by Product of Each Segment (Result/Forecast)

(Breakdown figures by segment and by product category in the full-year forecast announced on August 12, 2021 have been revised)

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

							Result for the year ending March 31, 2022 (FY2021)						【Forecast】 Year ending March 31, 2022 (FY2021)
			1st quarter-end			2nd quarter-end			3rd quarter-end			4th quarter-end		2nd quarter-end		Full year
					(cumulative)			(cumulative)			(cumulative)		(cumulative)
		FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	Amount	Net change	Amount	Net change
		2020	2021			2020	2021			2020	2021			2020	2021
		Amount	YOY	Amount	YOY	Amount	YOY	Amount	YOY		Amount		YOY		Amount	YOY
				(%)			(%)			(%)			(%)			(%)		(%)
[Net sales]
	Butter	54	53	(1)	(2.5)	102	103	1	1.0	167				217				105	3		3.0	224	6	3.2
	Margarine	26	21	(4)	(18.3)	47	41	(5)	(12.4)	70				90				46	(0)		(1.0)	84	(6)	(7.3)
	Cheese	145	139	(5)	(3.8)	283	276	(7)	(2.6)	439				562				282	(1)		(0.5)	573	10	1.9
	Other	55	61	5	10.8	111	126	14	13.3	176				234				124	12		11.5	259	24	10.4
	Subsidiaries and other	288	306	17	6.1	595	630	34	5.8	900				1,200				610	15		2.6	1,257	57	4.8
	Dairy Products	570	582	11	2.1	1,140	1,178	37	3.3	1,754				2,306				1,170	29		2.6	2,400	93	4.0
	Milk and milk-based	185	192	7	3.8	386	375	(10)	(2.8)	576				755				409	22		5.8	743	(11)	(1.6)
	beverages
	Other beverages	81	77	(4)	(5.0)	169	161	(8)	(5.0)	243				312				172	2		1.7	304	(7)	(2.5)
	Yogurt	126	132	5	4.2	249	255	5	2.1	367				487				261	11		4.8	496	8	1.7
	Desserts and fresh cream	53	53	0	1.8	105	108	2	2.5	160				212				106	1		1.0	220	7	3.7
	Other	6	7	0	7.7	15	16	1	11.9	23				31				18	3		22.7	35	4	13.9
	Subsidiaries and other	173	170	(2)	(1.6)	371	346	(25)	(6.9)	545				687				341	(30)		(8.1)	689	2	0.3
	Beverage and Dessert	627	634	6	1.1	1,298	1,263	(35)	(2.7)	1,917				2,486				1,310	11		0.9	2,490	3	0.1
	Feedstuffs	78	92	13	17.1	154	188	33	21.8	237				321				162	7		4.7	370	48	15.2
	Seed products	33	32	(0)	(2.0)	57	58	0	1.7	72				88				58	0		0.0	89	0	1.1
	Feedstuffs and Seed	112	125	12	11.5	212	247	34	16.3	310				410				220	7		3.4	460	49	12.1
	Other	88	86	(1)	(2.0)	177	180	2	1.4	263				341				180	2		1.3	350	8	2.5
	Total	1,398	1,428	29	2.1	2,829	2,869	39	1.4	4,244				5,545				2,880	50		1.8	5,700	154	2.8
[Operating profit]
	Dairy Products	32	35	2	9.2	65	63	(2)	(3.7)	112				136				57	(8)		(13.2)	129	(7)	(5.7)
	Beverage and Dessert	8	17	9	105.0	27	34	7	26.3	37				41				35	7		26.6	52	10	25.5
	Feedstuffs and Seed	7	8	1	18.0	12	14	2	17.8	11				11				11	(1)		(11.2)	10	(1)	(11.0)
	Other	2	3	0	16.7	6	8	2	37.9	10				10				5	(1)		(23.0)	14	3	32.6
	Total	50	65	14	29.8	110	122	11	10.1	169				197				108	(2)		(2.6)	205	7	3.6

(Notes) 1. Main types of goods traded by business segment

Dairy Products: Dairy products (cheese, butter, milk powder, etc.); margarine; Nutrition business (functional food products, infant formula, etc.), etc.

Beverage and Dessert: Beverages (milk drinks, fruit juice beverages, etc.); yogurts; desserts; fresh cream, etc.

Feedstuffs and Seed: Cattle feed; pasture forage and crop seed; vegetable seeds; landscaping, etc.

Other: Joint distribution center services; real estate leasing, etc.

1. The net sales for each segment list the figures for external customers. Note that figures for external customers are also used in the year-on-year comparisons.
2. Subsidiaries and other includes the sales by subsidiaries and the total effects from accounting for consolidation (intercompany elimination, etc.). Feedstuffs and Seed are on a consolidated basis (after intercompany elimination, etc.).
3. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. All figures in the above table were prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

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Nutrition Business of Dairy Products (Breakdown figures by segment and by product category in the full-year forecast announced on August 12, 2021 have been revised)

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

							Result for the year ending March 31, 2022 (FY2021)						【Forecast】 Year ending March 31, 2022 (FY2021)
			1st quarter-end			2nd quarter-end			3rd quarter-end			4th quarter-end		2nd quarter-end		Full year
					(cumulative)			(cumulative)			(cumulative)		(cumulative)
		FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	Amount	Net change	Amount	Net change
		2020	2021			2020	2021			2020	2021			2020	2021
		Amount	YOY	Amount	YOY	Amount	YOY	Amount	YOY		Amount		YOY		Amount	YOY
				(%)			(%)			(%)			(%)			(%)		(%)
[Net sales]
	Functional food products	13	16	3	22.3	28	32	3	13.8	45				61				29	1		3.6	66	5	8.8
	Powdered milk and other	28	26	(1)	(4.4)	54	54	0	0.8	82				106				54	(0)		(0.2)	107	1	1.5
	Total on a consolidated basis	41	43	1	4.3	83	87	4	5.3	127				167				84	0		1.1	174	7	4.2

(Notes) 1. These figures are on a consolidated basis (after intercompany elimination, etc.)

2. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. All figures in the above table were prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

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3. Causes of Net Changes in Consolidated Operating Profit (Result/Forecast)

(Breakdown figures for causes of net changes in the full-year forecast announced on August 12, 2021 have been revised)

Result

Six months ended September 30, 2020

11.0 billion yen

+1.1 billion yen - Changes in product composition

+500 million yen - Increase in profit on increase in sales volume

+300 million yen - Changes in sales unit price

+300 million yen - Decrease in fixed costs

+400 million yen - Other

-800 million yen - Increase in advertising and promotional costs

-600 million yen - Increase in raw materials costs

-100 million yen - Increase in operating costs

12.2 billion yen

Six months ended September 30, 2021

Forecast

Year ended March 31, 2021

19.7 billion yen

+2.5 billion yen - Increase in profit on increase in sales volumes

+1.8 billion yen - Changes in product composition

+800 million yen - Changes in sales unit price

+400 million yen - Other

-1.8 billion yen - Increase in raw materials costs

-1.6 billion yen - Increase in advertising and promotional costs

-800 million yen - Increase in fixed costs

-600 million yen - Increase in operating costs

20.5 billion yen

Year ending March 31, 2022 (forecast)

Details of Consolidated Operating Profit by Segment

			Factors behind changes for the six months ended
		FY2020		September 30, 2021
	Factors behind changes	full year		Dairy	Beverage	Feed-
			Total	and	stuffs	Other
			Products
				Dessert	and Seed
【Marginal profit】
	Changes in sales unit	10	3	(1)	0	4	0
	price
	Changes in sales volume	(18)	5	2	2	0	1
	Changes in product	1	11	1	10	0	0
	composition
	Changes in raw materials	1	(6)	(3)	(3)	0	0
	costs
	Changes in operating	(10)	(1)	(1)	0	0	0
	costs
	Other	12	4	2	1	0	0
	Subtotal	(4)	16	0	10	4	1
【Fixed costs and others】
	Changes in advertising	11	(8)	(1)	(7)	0	0
	and promotional costs
	Changes in fixed costs	10	3	(1)	4	(2)	1
	Subtotal	21	(5)	(2)	(3)	(2)	1
	Total	17	11	(2)	7	2	2

Quarterly change (cumulative)

1Q 2Q 3Q 4Q

• 3
• 5

• 11

1. (6)

• (1)

• 4

20 16

1. (8)

• 3

1. (5)
   14 11

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

【Forecast】 Factors behind changes for the year ending March 31, 2022 (FY2021), full year

Factors behind changes		Dairy	Beverage	Feed-
	Total	and	stuffs	Other
	Products
		Dessert	and Seed
【Marginal profit】
Changes in sales unit	8	4	1	3	0
price
Changes in sales volume	25	16	7	0	2
Changes in product	18	1	17	0	0
composition
Changes in raw materials	(18)	(11)	(7)	0	0
costs
Changes in operating	(6)	(4)	(2)	0	0
costs
Other	4	2	1	0	0
Subtotal	31	8	17	3	2
【Fixed costs and others】
Changes in advertising	(16)	(7)	(9)	0	0
and promotional costs
Changes in fixed costs	(8)	(8)	2	(4)	1
Subtotal	(24)	(15)	(7)	(4)	1
Total	7	(7)	10	(1)	3

• The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. "Factors behind changes" in the above forecast were prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

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