I am Hirotatsu Shimada of Unicharm Corporation. Thank you very much for taking time out of your busy schedules to participate in today's web conference for Unicharm Corporation's financial results for 3Q of the fiscal year ending December 2022.

I would like to explain the financial results.

1

First, I would like to explain the summary of the financial results for 3Q of the fiscal year ending December 31, 2022.

2

Please look at page three of the document. This is the financial results summary for 3Q.

3

Now, let's move on to page four, the consolidated account highlights.

As for business results, net sales increased by JPY654.5 billion, or up 14.5%, to a record high for 3Q.

Core operating income decreased by JPY91.7 billion, or down 5.9%, but is improving in the three-month period from April to September, achieving an increase despite last year's hurdle.

The core operating income margin deteriorated by 3 percentage points to 14%, due to a further rise in raw material costs in 2H, partly reflecting the recent high level of oil prices, as well as an increase in the distribution cost ratio. However, the core operating income margin from July to September was 15.6%, showing steady improvement compared to 1H of the fiscal year.

As shown on the right side of the table, the consolidated forecast for profit attributable to owners of the parent company is slightly behind the plan, but core operating income and profit before tax are within expectations, and net sales, an important factor, are on track.

The main reason for the delay in profit attributable to owners of the parent company is the higher-than-expected depreciation of the yen in the tax expense portion and the higher burden tax rate due to tax effects related to retained earnings of local subsidiaries. The details of the financial results will be explained in the next and subsequent pages.

4

Please turn to page five. This is the quarterly performance trend.

Even with COVID-19 situation starting in 2020, the products we handle are daily necessities, and we continue to see stable sales growth while promoting value pass- through, reaching another record high of JPY232.9 billion in the quarter.

Core operating income also reached a record high of JPY36.2 billion during the quarter, despite the severe price hikes of further raw material and logistics costs. Profitability also improved to 15.6% after bottoming out in 2Q from April to June.

Although there are some lockdowns in each country and region, the market for the product categories we use is improving. We will continue to expand our top line and increase core operating income by promoting value pass-through in response to changes in the environment.

5

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Unicharm Corporation published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 05:01:05 UTC.