Yukiguni Maitake : Consolidated Financial Results for the Nine Months Ended December 31, 2022 (Under IFRS)

Note: This document has been translated from 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.

February 9, 2023

Consolidated Financial Results for the

Nine Months Ended December 31, 2022 (Under IFRS)

Company name:	YUKIGUNI MAITAKE CO., LTD.
Listing:	Tokyo Stock Exchange
Securities code:	1375
URL:	https://www.maitake.co.jp/
Representative:	Masafumi Yuzawa, President and CEO, Representative Director
Inquiries:	Takenori Sakurai, Senior Executive Officer (Chief Financial Officer)
Telephone:	[phone]

Scheduled date to file quarterly securities report:	February 10, 2023
Scheduled date of dividend payment commencement	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the First Nine Months Ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(1) Consolidated Operating Results (Cumulative)		(Percentages indicate year-on-year changes.)
	Total income	Operating profit	Profit before tax	Profit
Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen		%
December 31, 2022	32,455	(11.0)	2,892	(46.9)	2,597		(49.5)	1,733		(48.8)
December 31, 2021	36,458	(8.2)	5,451	(23.2)	5,139		(21.0)	3,387		(20.5)
	Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
	owners of parent	income		per share		per share
Nine months ended	Millions of yen	%	Millions of yen	%			Yen			Yen
December 31, 2022	1,732	(48.9)	1,733	(48.8)			43.44			43.44
December 31, 2021	3,386	(20.6)	3,384	(20.8)			84.85			84.83
(Reference)
	Core operating profit	Core EBITDA	Core EBITDA margin
Nine months ended	Millions of yen	%	Millions of yen	%			%
December 31, 2022	2,322	(49.5)	3,885	(35.9)			16.9
December 31, 2021	4,595	(29.6)	6,064	(24.1)			25.0
(2) Consolidated Financial Position
					Equity attributable to	Ratio of equity
	Total assets	Total equity	attributable to owners of
	owners of parent
					parent to total assets
As of	Millions of yen	Millions of yen	Millions of yen			%
December 31, 2022		37,108		11,014			11,014			29.7
December 31, 2021		36,096		10,470			10,471			29.0

2. Cash Dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end		Fiscal year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended	‒	14.00		‒		16.00	30.00
March 31, 2022
Fiscal year ending	‒	14.00		‒
March 31, 2023
Fiscal year ending
March 31, 2023						16.00	30.00
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

	Total income	Operating profit	Profit before tax	Profit		Profit attributable to	Basic earnings
		owners of parent	per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	42,661	-9.4	2,151	-56.8	1,754	-61.6	1,167	-61.0	1,166	-61.0	29.26

Note: Revisions from financial results forecasts announced most recently: Yes

As for the consolidated financial forecast for the fiscal year ending March 31, 2023, please refer to the "Revision of Full-year Forecast of Consolidated Financial Results for the Fiscal Year Ending March, 2023" released today (February 9, 2023).

(Reference)

	Core Operating Profit	Core EBITDA		Core EBITDA Margin
	Millions of yen	%	Millions of yen		%	%
Full year	2,407	-56.9	4,510		-40.4	14.4

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
4. Number of issued shares (ordinary shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of December 31, 2022

As of March 31, 2022

39,910,700 shares

39,910,700 shares

(ii) Number of treasury shares at the end of the period

As of December 31, 2022

As of March 31, 2022

27,311 shares

40,000 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Nine months ended December 31, 2022

Nine months ended December 31, 2021

39,870,700 shares

39,910,700 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters
  (Caution concerning forward-looking statements)
  The forward-looking statements, such as forecasts of financial results, included in this document are based on information available to the management as of the date of the document and certain assumptions that the management considers reasonable. The Company does not promise that forecasts will be achieved. Actual results may differ significantly due to a range of factors.

(Other special comments)

1. The Company and its consolidated subsidiaries (together, "the Group") apply the International Financial Reporting Standards (hereinafter "IFRS").
2. Core operating profit = Operating profit - IAS41 "Agriculture" applying effects - Other income and expenses - One-time income and expenses
3. Core EBITDA = Core operating profit + Depreciation + Amortization
4. Core EBITDA margin = Core EBITDA / Revenue
5. The effect of applying IAS 41 "Agriculture" is to apply IAS 41 "Agriculture" to the production process of mushrooms, from preparation to harvest, and to measure the mushrooms as biological assets at fair value less costs to sell. The gains or losses from the changes in fair value are considered as the impact amount.
6. Other income and expenses are mainly impairment losses and loss on disposal of fixed assets.
7. One-timeincome and expenses are income and expenses that are not incurred in the normal course of business (For example, listing-related expenses, etc., which were adjustment items in the financial statements for the previous fiscal year, are included). Currently, there are no one-time income and expenses incurred.
8. Core operating profit, Core EBITDA and Core EBITDA margin are not indicators defined by IFRS, but the Group assumes these indicators are useful for investors to evaluate the Group's performance. These financial indicators exclude some expenses and non-recurring gains / losses that are not expected to occur after listing. Core operating profit, Core EBITDA, Core EBITDA margin should not be considered as indicators to replace the other indicators shown in accordance with IFRS because they do not include some of the items that affect the profit for the period, so they are subject to significant restrictions as means of analysis. Core operating profit, Core EBITDA, Core EBITDA margin disclosed by the Group may be less useful in comparison with the same or similar indicators of other competitors because they are calculated according to a different method from those of such other companies.

(How to obtain supplementary financial results briefing materials and financial results briefing details) Supplementary financial results briefing materials are posted on our website on February 9, 2023.

Accompanying Materials - Contents

Ⅰ. Qualitative Information for the first Nine-Month Period of the Fiscal Year Ended March 31, 2023…2

• 1. Analysis of Operating Results………………………………………………………………………………2
  2. Analysis of Financial Position………………………………………………………………………………4
  3. Analysis of Cash Flows ………………………………………………………………………………………4
  4. Explanations about Forward-Looking Information Including Forecast of Consolidated Financial Results…5
• . Summarized Quarterly Consolidated Financial Statements and Significant Notes ……………6
• 1. Summarized Quarterly Consolidated Statements of Financial Position……………………………………6
  2. Summarized Quarterly Consolidated Statements of Income and Comprehensive Income …………………8
  3. Summarized Quarterly Consolidated Statement of Changes in Equity……………………………………10
  4. Summarized Quarterly Consolidated Statements of Cash Flows………………………………11
  5. Notes to Summarized Consolidated Financial Statements…………………………………………………12 (Going Concern Assumptions) ……………………………………………………………………………12 (Segment Information) ……………………………………………………………………………………12 (Earnings per Share) ………………………………………………………………………………………13 (Significant Subsequent Events) …………………………………………………………………………13

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Ⅰ. Qualitative Information for the First Nine-Months Period of the Fiscal Year Ending March 31, 2023

1. Analysis of Operating Results

During the third quarter of the current consolidated fiscal year (April 1, 2022 to December 31, 2022), the Japanese economy showed a recovery in economic activity due to the easing of restrictions on behavior to prevent the spread of COVID19, while the number of new coronavirus cases still continues to increase, and the international situation remains severe and unstable due to the unstable international situation caused by the Russia's invasion of Ukraine, high energy prices and prolonged yen depreciation.

In the business environment surrounding the Group's operations, consumers are becoming more defensive to protect their household budgets as a result of a series of price hikes for food and daily necessities in response to soaring crude oil prices and other factors. In addition, the Group's profit has also been squeezed by rising costs due to soaring utility unit prices and the impact of raw material price hikes.

In this environment, the Group is working to establish a foundation as a comprehensive premium mushroom manufacturer by leveraging the Company's production technology, know-how, and sales capabilities that have been cultivated over the years in accordance with its medium-term business plan. In addition to this, we have developed and promoted the functional properties of mushrooms, especially maitake mushrooms, to contribute to the health of consumers through the provision of safe and secure products and to develop our business in order to contribute to the realization of a healthy society.

After about 6 years of development, we succeeded in developing and mass-producing a new in-house strain of white maitake mushroom, which is difficult to cultivate due to its delicate nature and there are many high hurdles to its stable production, and launched "Yukiguni Maitake Kiwami White" in September 2022. The "Yukikuni-Maitake Kiwami White" is our original variety that inherits the texture and taste as well as the nutrients of the existing "Yukikuni-Maitake Kiwami". The "Yukiguni-Maitake Kiwami White" has been well received not only for its delicious taste, but also for its beautiful and gorgeous appearance, and has been used in salads and other side dishes in food service menus as well. We will strive to further expand sales channels in the future. We will continue to expand our lineup of premium mushrooms following "Yukiguni Maitake Kiwami White".

As a result of the above, Total income for the third quarter of the current consolidated cumulative period was ¥32,455 million (-11.0%year-on-year), of which revenue was ¥23,057 million (-4.8%year-on-year). Gross profit was ¥8,966 million (-22.0%year-on-year). Selling, general and administrative (SG&A) expenses were ¥6,036 million (+0.2% year-on-year). Operating profit was ¥2,892 million (-46.9%year-on- year) and profit attributable to owners of the parent was ¥1,732 million (-48.9%year-on-year). In the current consolidated cumulative period, gains arising from changes in fair value related to the application of IFRS Agricultural Accounting (IAS 41) were included in total income of ¥9,398 million (-23.2% year- on-year) and in the cost of sales of ¥8,707 million (-22.6%year-on-year).

[Business results for the nine months ended December 31, 2022]

(Millions of yen)

	Nine months ended	Nine months ended	% Change
	December 31, 2021	December 31, 2022	year-on-year
Revenue	24,224	23,057	(4.8)
Gains arising from changes in fair	12,234	9,398	(23.2)
value
Total income	36,458	32,455	(11.0)
Operating profit	5,451	2,892	(46.9)
Profit before tax	5,139	2,597	(49.5)
Profit attributable to owners of parent	3,386	1,732	(48.9)

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