Prima Meat Packers : (Delayed) Consolidated Financial Results for the Three Months Ended June 30,2021【Japanese GAAP】

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

August 2, 2021

Company name: Prima Meat Packers, Ltd.

Stock exchange listing: Tokyo Stock Exchange

Securities Code number: 2281

URL: https://www.primaham.co.jp/

Representative: Naoto Chiba, President and Representative Director

Contact: Takahiro Uchiyama, Senior Managing Executive Officer

Phone: [phone]

Scheduled date of filing quarterly securities report: August 10, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: None

Schedule of quarterly financial results briefing session: None

					(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 to June 30,
2021)
(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
			Net sales		Operating profit	Ordinary profit		Profit attributable to
					owners of parent
		Three months ended	Million yen	%	Million yen	%	Million yen	%		Million yen	%
		June 30, 2021	104,563	-	4,711	(15.5)	5,065	(12.5)		2,972	(14.1)
		June 30, 2020	103,558	2.5	5,576	58.0	5,790	51.8		3,461	10.8
		(Note) Comprehensive income: Three months ended June 30, 2021: ¥3,112 million [(29.8)%]
			Three months ended June 30, 2020: ¥4,434 million [17.3%]
			Earnings	Diluted earnings
			per share		per share
		Three months ended	Yen		Yen
	June 30, 2021	59.16		-
	June 30, 2020	68.88		-

The Company and its subsidiaries (The "Group") has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter ended June 30, 2021. As a result, changes in net sales from the previous corresponding period before the said accounting standard was applied are not presented.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of June 30, 2021	215,885	114,594	47.7
As of March 31, 2021	214,542	114,761	48.3

(Reference) Equity: As of June 30, 2021: ¥103,055 million As of March 31, 2021: ¥103,632 million

Excluded: -

2. Dividends

			Annual dividends
	1st	2nd		3rd		Year-end		Total
	quarter-end	quarter-end		quarter-end
Fiscal year ended	Yen	Yen		Yen		Yen		Yen
-	20.00		-		65.00	85.00
March 31, 2021
Fiscal year ending	-
March 31, 2022
Fiscal year ending
March 31, 2022		20.00		-		45.00	65.00
(Forecast)

(Note) Revision to the dividend forecast announced most recently: None

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

(% indicates changes from the previous corresponding period.)

							Profit attributable	Earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Second quarter-end	220,600	-	8,100	(27.3)	8,200	(28.4)	5,200	(25.3)	103.49
(Cumulative)
Full year	437,700	-	16,600	(22.7)	16,800	(25.0)	10,500	(25.9)	208.96

(Note) Revision to the financial results forecast announced most recently: None

The Group has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter ended June 30, 2021. As a result, changes in net sales from the previous corresponding period are not presented.

Notes:

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None

New: -

1. Accounting applied especially for the preparation of quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2021: 50,524,399 shares

March 31, 2021: 50,524,399 shares

1. Total number of treasury shares at the end of the period: June 30, 2021: 276,167 shares
   March 31, 2021: 275,939 shares

3) Average number of shares during the period:

Three months ended June 30, 2021: 50,248,330 shares

Three months ended June 30, 2020: 50,249,304 shares

(Note) The number of treasury shares that has been excluded when calculating total number of treasury shares at the end of the period and average number of shares during the period includes the Company's shares owned by the Board Benefit Trust (BBT).

• These quarterly financial results are outside the scope of quarterly review by a certified public accountant or an audit firm.
• Explanation of the proper use of the financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of preparation and certain assumptions deemed to be reasonable, and actual results may vary significantly due to various factors. For the assumptions and notes for earnings forecasts, please refer to "1. Qualitative Information on Quarterly Financial Results for the Period, (1) Explanation on Operating Results" on page 2 of the attachment.

Prima Meat Packers, Ltd. (2281)
Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period ...............................................	2
(1) Explanation on Operating Results ...................................................................................................	2
(2) Explanation on Financial Position ...................................................................................................	3
(3) Explanation on Consolidated Financial Results Forecast
and Other Forward-looking Information .........................................................................................	4
2. Quarterly Consolidated Financial Statements and Primary Notes ......................................................	5
(1) Quarterly Consolidated Balance Sheets ..........................................................................................	5
(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................	7
(3) Quarterly Consolidated Statements of Cash Flows .........................................................................	9
(4) Notes to the Quarterly Consolidated Financial Statements ...........................................................	11
(Notes on going concern assumption) ..........................................................................................	11
(Notes in the case of significant changes in shareholders' equity) ................................................	11
(Accounting applied especially for the preparation
of quarterly consolidated financial statements) ...........................................................................	11
(Changes in accounting policies) .................................................................................................	11
(Segment information) .................................................................................................................	12

1

Prima Meat Packers, Ltd. (2281)

1. Qualitative Information on Quarterly Financial Results for the Period

1. Explanation on Operating Results

Items in this document which relate to the future are judgments made by Prima Meat Packers, Ltd., and its subsidiaries (the "Group") as of the end of the first quarter ended June 30, 2021, consolidated basis.

During the three months ended June 30, 2021, although consumption trends have changed from a year ago, when a state of emergency had been declared, giving rise to consumer sentiment for personal spending on food purchases for home consumption and stockpiling, demand for consumption at home has remained high. On the other hand, the food service industry continues to suffer from requests for shorter opening hours and self- quarantining especially in urban areas. Despite efforts to stimulate demand with take-away and home-delivery services, the severe business environment continues with no prospects for recovery.

In our sector, the market environment is plagued by concerns over both price and supply, as the market price soared for livestock meat overseas, livestock disease persisted at overseas suppliers of materials for processed foods, and delays in logistics caused supply issues. In addition, the grain market that directly impacts feed prices have surged. The pork market in Japan faced an extremely volatile market environment as demand and supply went out of balance.

Based on our mission as a group of contributing "To food culture and society through great taste and excitement," we set and worked to attain the basic policy goal in our medium-term management plan of "Strengthening basic sustainability through ESG measures," "Expanding the scope of existing businesses and further strengthening the earnings base," and "Business creation and global expansion for growth markets."

As a result, net sales amounted to ¥104,563 million (¥103,558 million for the same period of the previous fiscal year), operating profit was ¥4,711 million (down 15.5% year on year), ordinary profit was ¥5,065 million (down 12.5% year on year), and profit attributable to owners of parent was ¥2,972 million (down 14.1% year on year).

The Group has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the beginning of the first quarter ended June 30, 2021. Accordingly, the explanation on operating results below does not mention year-on-year comparison for net sales. For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes, (4) Notes to the Quarterly Consolidated Financial Statements (Changes in accounting policies)."

Results by segment are as follows:

1) Ham and sausage section

We implemented measures to increase our share in the retail product market. In the Koukun® Sausage series, we won plaudits for not only our classic drawstring-packaged range but also for products in large packs with zippered. The series is supported widely by customers of all generations with rising product recognition as one of our core brands among customers. Furthermore, as we mark the 90th anniversary of our founding this year, we conducted sales campaigns for our mainstay retail products, including the Koukun® Sausage series, cured ham products, and the Shinsen Tsukaikiri Ren Pack (multi-pack of single use portions) series by increasing their volume for a limited period of time as commemorative products for sales promotion. On the other hand, commercial-use products, which were struggling in the severe environment last year, increased sales year on year mainly due to a partial recovery of the market and new product proposals. As marketing promotion strategies, we resumed the Tokyo Disney Resort® invitation campaign, and launched new initiatives such as the LINE campaign and an official corporate Twitter account. At our plants, we continued reforms and improvements to raise productivity, even as we take rigorous measures against infection. We promoted utility cost-cutting and other initiatives, steadily improving our man-hour productivity and cost competitiveness. As a result, we increased total net sales and volumes year on year in the ham and sausage section.

2