S Foods : Summary of Consolidated Financial Results for the Second Quarter

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended August 31, 2022

[Japanese GAAP]

Company name: S Foods Inc.	October 13, 2022
Stock exchange listing: Tokyo
Code number: 2292
URL: https://www.sfoods.co.jp
Representative: Shinnosuke Murakami	President and Representative Director
Contact: Yosuke Yuasa	Director Supervising Administration Group

Phone: [phone]

Scheduled date of filing quarterly securities report: October 14, 2022

Scheduled date of commencing dividend payments: October 31, 2022

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended August 31, 2022 (March 01, 2022 to August 31, 2022)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
August 31, 2022	193,827		13.8	8,587	6.5	9,704	15.0	5,726	2.4
August 31, 2021	170,277		6.9	8,066	33.8	8,438	36.8	5,594	(10.5)

(Note) Comprehensive income:	Six months ended August 31, 2022:
	Six months ended August 31, 2021:

¥	8,908 million	[	30.0%]
¥	6,851 million	[	(1.5) %]

		Basic earnings	Diluted earnings per
		per share	share
Six months ended		Yen		Yen
August 31, 2022		181.10		-
August 31, 2021		176.98		-
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of		Million yen		Million yen	%
August 31, 2022		202,198		113,902	52.9
February 28, 2022		181,518		106,157	54.7

(Reference) Equity: As of	August 31, 2022:		¥	106,876 million
As of	February 28, 2022:	¥	99,256 million
2. Dividends
						Annual dividends
			1st		2nd	3rd		Year-end	Total
			quarter-end	quarter-end	quarter-end
			Yen		Yen	Yen		Yen	Yen
Fiscal year ended February 28, 2022		-		35.00	-		35.00	70.00
Fiscal year ending February 28, 2023		-		39.00
Fiscal year ending February 28, 2023					-		39.00	78.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023(March 01, 2022 to February 28, 2023) (% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year			375,000		4.5	14,800	(15.1)	15,000	(16.7)	10,000	(16.3)	316.31
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the six months ended August 31, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:								)
Exclusion:	-	(Company name:								)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

August 31, 2022:	32,267,721	shares
February 28, 2022:	32,267,721	shares
2) Total number of treasury shares at the end of the period:
August 31, 2022:	646,556	shares
February 28, 2022:	652,801	shares

3) Average number of shares during the period:
Six months ended August 31, 2022:	31,617,296	shares
Six months ended August 31, 2021:	31,611,178	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of February 28,2022	As of August 31,2022
Assets
	Current assets
		Cash and deposits	41,859	42,359
		Notes and accounts receivable - trade	32,149	40,220
		Merchandise and finished goods	25,207	31,073
		Work in process	1,799	2,016
		Raw materials and supplies	3,985	4,424
		Other	6,321	8,036
		Allowance for doubtful accounts	(38)	(49)
		Total current assets	111,285	128,081
	Non-current assets
		Property, plant and equipment
		Buildings and structures	57,186	58,316
		Accumulated depreciation	(27,798)	(29,022)
		Buildings and structures, net	29,387	29,294
		Land	15,299	15,041
		Other	36,576	42,272
		Accumulated depreciation	(25,584)	(26,749)
		Other, net	10,991	15,522
		Accumulated impairment	(3,515)	(3,785)
		Total property, plant and equipment	52,163	56,073
		Intangible assets
		Goodwill	257	227
		Other	481	434
		Total intangible assets	739	662
		Investments and other assets
		Investment securities	13,887	13,800
		Retirement benefit asset	151	163
		Other	3,494	3,613
		Allowance for doubtful accounts	(202)	(196)
		Total investments and other assets	17,331	17,381
		Total non-current assets	70,233	74,117
	Total assets	181,518	202,198

				(Million yen)
			As of February 28,2022	As of August 31,2022
Liabilities
	Current liabilities
		Notes and accounts payable - trade	22,475	29,337
		Short-term borrowings	5,533	11,248
		Income taxes payable	1,770	3,424
		Provision for bonuses	1,054	1,114
		Other	10,880	12,008
		Total current liabilities	41,714	57,133
	Non-current liabilities
		Bonds payable	450	400
		Long-term borrowings	28,779	26,402
		Provision for retirement benefits for directors (and	174	130
		other officers)
		Retirement benefit liability	1,886	1,901
		Other	2,357	2,329
		Total non-current liabilities	33,647	31,162
	Total liabilities	75,361	88,296
Net assets
	Shareholders' equity
		Share capital	4,298	4,298
		Capital surplus	18,739	18,754
		Retained earnings	72,631	77,250
		Treasury shares	(410)	(406)
		Total shareholders' equity	95,258	99,896
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	2,956	2,883
		securities
		Deferred gains or losses on hedges	13	88
		Foreign currency translation adjustment	989	3,977
		Remeasurements of defined benefit plans	38	31
		Total accumulated other comprehensive income	3,998	6,980
	Non-controlling interests	6,900	7,025
	Total net assets	106,157	113,902
Total liabilities and net assets	181,518	202,198

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Million yen)
		For the six months	For the six months
		ended August 31,2021	ended August 31,2022
Net sales	170,277	193,827
Cost of sales	142,864	166,484
Gross profit	27,412	27,342
Selling, general and administrative expenses	19,346	18,754
Operating profit	8,066	8,587
Non-operating income
	Interest income	8	83
	Dividend income	293	329
	Rental income from buildings	66	109
	Share of profit of entities accounted for using equity	4	5
	method
	Foreign exchange gains	-	414
	Other	217	381
	Total non-operating income	589	1,324
Non-operating expenses
	Interest expenses	131	138
	Foreign exchange losses	13	-
	Rent cost	23	24
	Other	50	44
	Total non-operating expenses	218	207
Ordinary profit	8,438	9,704
Extraordinary income
	Gain on sale of non-current assets	2	14
	Gain on sale of investment securities	2	-
	Subsidy income	270	210
	Compensation income	1	-
	Total extraordinary income	276	224
Extraordinary losses
	Loss on disposal of non-current assets	185	78
	Impairment losses	19	68
	Loss on store closings	0	0
	Loss on temporary store closings	216	39
	Loss on tax purpose reduction entry of non-current	-	50
	assets
	Other	1	1
	Total extraordinary losses	424	239
Profit before income taxes	8,290	9,689
Income taxes	2,557	3,764
Profit	5,732	5,925
Profit attributable to non-controlling interests	138	199
Profit attributable to owners of parent	5,594	5,726