T Hasegawa : FY2021 Financial Results Presentation

Financial Results

for the Fiscal Year Ended September 30, 2021

November 25, 2021

T. HASEGAWA CO., LTD.

Contents

1. Summary of Consolidated Financial Results II. Impact of COVID-19
   III. Management Policy IV. Global Strategy
   V. Medium-TermThree-Year Plan Summary VI. Capital Policy
   VII.Accompanying Materials

1

1. Summary of
   Consolidated Financial Results

2

Market Environment

Japanese Market

• Trends by category
  FYE September 2021 (October 2020 to September 2021)

	Category		Trend
				• Sluggish consumption owing partly to consumers refraining from going out as a result of
				COVID-19
Beverages	Decrease	• Sluggish demand from the office sector, particularly in large cities, with commercial and
vending machine sales remaining weak
				• Cool summer resulted in poor sales of sports drinks, barley tea, and other thirst-quenching
				beverages
				• In potato products, sales of bagged products increased slightly, and the proportion of premium
andSweetsavory snacks		Chocolate	Increase	products in the sales mix increased
	large-bag products
		Savory	Flat YoY	• In corn products, chips and puffs declined slightly, while popcorn grew
		snacks		• Sales of wheat flour products fell, and in other snacks, sales of small pouch-type products
				were strong
				• Sales of chocolate bars fell back from a large increase in the previous year
				• Sales of high-cocoa and functional products increased due to an expanded product lineup of
				• Chocolate snacks grew, particularly for large-bag products
				• During the summer, when demand is strongest, sales increased significantly in July, but fell in
Frozen desserts	Increase	August and September owing to cooler temperatures
• Multipack products remained on par with the previous year despite a fallback from the previous
slightly
			year's increase
				• New products contributed
Instant noodles	Decrease	• Struggled in March-May owing to a fallback from special demand in the previous year
• For cup noodles, the introduction of new products and stronger promotions at
				supermarkets,and other factors made up for the delayed recovery in convenience store sales
				Source: Nikkan Keizai Tsushin

3

Summary of Consolidated Performance

• YoY
  Sales increased mainly due to the contribution of MISSION (U.S.), which T. HASEGAWA U.S.A. Inc. acquired in December 2020, as well as higher sales at Chinese subsidiaries
  Operating profit, ordinary profit, and net profit increased mainly due to an increase in net sales and an improvement in the cost-of-sales ratio
• Vs. target
  Achieved our net sales target, mainly due to performance at the Company (non-consolidated), U.S. subsidiaries, and Chinese subsidiaries exceeding targets
  Achieved our operating profit target, mainly because net sales exceeded the target and SG&A expenses came in under the target

(Million yen)

FY 2020	FY 2021
(targets revised
(actual)
on August 2)

	Net sales	50,192	54,700
	Cost of sales	30,783	32,650
	Gross profit	19,408	22,050
	SG&A expenses	14,052	15,980
	Operating profit	5,356	6,070
	Ordinary profit	5,861	6,560
	Income before	7,028	8,380
	income taxes
	Net profit	5,090	5,950

FY 2021 (actual)

55,755

33,106

22,648

15,788

6,859

7,466

9,692

6,763

Change

	YoY		Vs. target
	Amount	％	Amount	％
	5,562	11.1%	1,055		1.9%
	2,322	7.5%	456		1.4%
	3,239	16.7%	598		2.7%
	1,736	12.4%	-191		-1.2%
	1,503	28.1%	789		13.0%
	1,605	27.4%	906		13.8%
	2,664	37.9%	1,312		15.7%
	1,672	32.9%	813		13.7%

EBITDA （※）	8,360	9,800	10,618

• EBITDA = Operating profit + Depreciation + Amortization of goodwill EBITDA-to-sales ratio: 19.0%

2,258	27.0%	818	8.4%

4