【Delayed】Supplementary Information Three months ended June 30, 2021 (April 1,2021 to June 30, 2021)

Aug 31, 2021 at 5:01 AM UTC · Issued by Megmilk Snow Brand Co., Ltd.

Supplementary Information

Three months ended June 30, 2021

(April 1, 2021 to June 30, 2021)

Table of Contents for Attachments

Front cover	Page
1.	Quarterly Consolidated Statements of Income (Result/Forecast)	1
2.	Quarterly Consolidated Sales and Operating Profit by Product of Each Segment (Result/Forecast)	2
3.	Causes of Net Changes in Consolidated Operating Profit (Result/Forecast)	4
4.	Quarterly Consolidated Balance Sheets (Result)	5
5.	Quarterly Consolidated Statements of Cash Flows (Result)	5
6.	Other Management Indicators (Result/Forecast)	6
7.	Financial Performance Data from FY2016 to FY2020	7

Earnings forecasts contained in this supplementary material are forward-looking statements and include uncertain factors. Please note that actual results may differ from forecasts due to various unknown or unpredictable factors.

This material has not been prepared to solicit investment.

This document has been translated from a part of 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. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

MEGMILK SNOW BRAND Co., Ltd.

1. Quarterly Consolidated Statements of Income (Result/Forecast)

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

						Result for the year ending March 31, 2022 (FY2021)						【Forecast】 Year ending March 31, 2022 (FY2021)
		1st quarter-end			2nd quarter-end			3rd quarter-end			4th quarter-end		2nd quarter-end		Full year
				(cumulative)			(cumulative)			(cumulative)		(cumulative)


	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	Amount	Net change	Amount	Net change

	2020	2021			2020	2021			2020	2021			2020	2021
	Amount	YOY	Amount	YOY	Amount	YOY	Amount	YOY		Amount		YOY		Amount	YOY

			(%)			(%)			(%)			(%)			(%)		(%)

Net sales	1,398	1,428	29	2.1	2,829				4,244				5,545				2,880	50	1.8	5,700	154	2.8
Cost of sales	1,175	1,180	4	0.4	2,375				3,555				4,651
Vs. Sales (%)	84.1	82.7			84.0				83.8				83.9
Selling, general and	172	182	9	5.7	343				519				695
administrative expenses

Vs. Sales (%)	12.3	12.8			12.1				12.2				12.5
Operating profit	50	65	14	29.8	110				169				197				108	(2)	(2.6)	205	7	3.6
Vs. Sales (%)	3.6	4.6			3.9				4.0				3.6				3.8			3.6
Non-operating income	6	9	2	32.4	14				22				30
Non-operating expenses	2	2	(0)	(18.5)	5				7				11
Ordinary profit	54	72	17	32.3	119				184				216				114	(5)	(4.8)	215	(1)	(0.8)
Vs. Sales (%)	3.9	5.1			4.2				4.3				3.9				4.0			3.8
Extraordinary income	0	0	(0)	(57.5)	0				0				31
Extraordinary loss	7	3	(3)	(50.4)	14				18				36
Profit before income taxes	47	68	21	45.0	104				166				211
Vs. Sales (%)	3.4	4.8			3.7				3.9				3.8
Income taxes	15	20	4	31.0	33				50				61
Profit (loss) attributable to non-	0	0	0	183.7	(0)				0				0
controlling interests


Profit attributable to owners of	31	48	16	51.1	71				115				149				68	(3)	(5.5)	125	(24)	(16.2)
parent

Vs. Sales (%)	2.3	3.4			2.5				2.7				2.7				2.4			2.2

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. All figures in the above table are prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

2. Quarterly Consolidated Sales and Operating Profit by Product of Each Segment (Result/Forecast)

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

							Result for the year ending March 31, 2022 (FY2021)						【Forecast】 Year ending March 31, 2022 (FY2021)
			1st quarter-end			2nd quarter-end			3rd quarter-end			4th quarter-end		2nd quarter-end		Full year
					(cumulative)			(cumulative)			(cumulative)		(cumulative)

		FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	Amount	Net change	Amount	Net change

		2020	2021			2020	2021			2020	2021			2020	2021
		Amount	YOY	Amount	YOY	Amount	YOY	Amount	YOY		Amount		YOY		Amount	YOY
				(%)			(%)			(%)			(%)			(%)		(%)

[Net sales]
	Butter	54	53	(1)	(2.5)	102				167				217				105	3	3.0	229	11	5.3
	Margarine	26	21	(4)	(18.3)	47				70				90				46	(0)	(1.0)	93	2	3.2
	Cheese	145	139	(5)	(3.8)	283				439				562				282	(1)	(0.5)	581	18	3.3
	Other	55	61	5	10.8	111				176				234				124	12	11.5	244	9	4.2
	Subsidiaries and other	288	306	17	6.1	595				900				1,200				610	15	2.6	1,250	50	4.2
	Dairy Products	570	582	11	2.1	1,140				1,754				2,306				1,170	29	2.6	2,400	93	4.0
	Milk and milk-based	185	192	7	3.8	386				576				755				409	22	5.8	791	36	4.8
	beverages

	Other beverages	81	77	(4)	(5.0)	169				243				312				172	2	1.7	310	(2)	(0.6)
	Yogurt	126	132	5	4.2	249				367				487				261	11	4.8	509	21	4.5
	Desserts and fresh cream	53	53	0	1.8	105				160				212				106	1	1.0	214	2	1.1
	Other	6	7	0	7.7	15				23				31				18	3	22.7	38	6	21.3
	Subsidiaries and other	173	170	(2)	(1.6)	371				545				687				341	(30)	(8.1)	675	(12)	(1.8)
	Beverage and Dessert	627	634	6	1.1	1,298				1,917				2,486				1,310	11	0.9	2,540	53	2.1
	Feedstuffs	78	92	13	17.1	154				237				321				162	7	4.7	322	0	0.1
	Seed products	33	32	(0)	(2.0)	57				72				88				58	0	0.0	88	(0)	(0.6)
	Feedstuffs and Seed	112	125	12	11.5	212				310				410				220	7	3.4	410	(0)	(0.0)
	Other	88	86	(1)	(2.0)	177				263				341				180	2	1.3	350	8	2.5
	Total	1,398	1,428	29	2.1	2,829				4,244				5,545				2,880	50	1.8	5,700	154	2.8
[Operating profit]
	Dairy Products	32	35	2	9.2	65				112				136				57	(8)	(13.2)	129	(7)	(5.7)
	Beverage and Dessert	8	17	9	105.0	27				37				41				35	7	26.6	55	13	32.7
	Feedstuffs and Seed	7	8	1	18.0	12				11				11				11	(1)	(11.2)	10	(1)	(11.0)
	Other	2	3	0	16.7	6				10				10				5	(1)	(23.0)	11	0	4.2
	Total	50	65	14	29.8	110				169				197				108	(2)	(2.6)	205	7	3.6

(Notes) 1. Main types of goods traded by business segment

Dairy Products: Dairy products (cheese, butter, milk powder, etc.); margarine; Nutrition business (functional food products, infant formula, etc.), etc.

Beverage and Dessert: Beverages (milk drinks, fruit juice beverages, etc.); yogurts; desserts; fresh cream, etc.

Feedstuffs and Seed: Cattle feed; pasture forage and crop seed; vegetable seeds; landscaping, etc.

Other: Joint distribution center services; real estate leasing, etc.

The net sales for each segment list the figures for external customers. Note that figures for external customers are also used in the year-on-year comparisons.
Subsidiaries and other includes the sales by subsidiaries and the total effects from accounting for consolidation (intercompany elimination, etc.). Feedstuffs and Seed are on a consolidated basis (after intercompany elimination, etc.).
The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. All figures in the above table were prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

Nutrition Business of Dairy Products

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

							Result for the year ending March 31, 2022 (FY2021)						【Forecast】 Year ending March 31, 2022 (FY2021)
			1st quarter-end			2nd quarter-end			3rd quarter-end			4th quarter-end		2nd quarter-end		Full year
					(cumulative)			(cumulative)			(cumulative)		(cumulative)

		FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	FY	FY	Net change	Amount	Net change	Amount	Net change

		2020	2021			2020	2021			2020	2021			2020	2021
		Amount	YOY	Amount	YOY	Amount	YOY	Amount	YOY		Amount		YOY		Amount	YOY
				(%)			(%)			(%)			(%)			(%)		(%)

[Net sales]
	Functional food products	13	16	3	22.3	28				45				61				29	1	3.6	61	0	0.2
	Powdered milk and other	28	26	(1)	(4.4)	54				82				106				54	(0)	(0.2)	108	2	2.1
	Total on a consolidated basis	41	43	1	4.3	83				127				167				84	0	1.1	169	2	1.4

(Notes) 1. These figures are on a consolidated basis (after intercompany elimination, etc.)

2. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. All figures in the above table were prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

3. Causes of Net Changes in Consolidated Operating Profit (Result/Forecast)

Result

Three months ended June 30, 2020

5.0 billion yen

+600 million yen - Changes in product composition

+400 million yen - Increase in profit on increase in sales volume +400 million yen - Changes in sales unit price

+200 million yen - Decrease in operating costs

+500 million yen - Other

-600 million yen - Increase in advertising and promotional costs

-100 million yen - Increase in raw materials costs

6.5 billion yen

Three months ended June 30, 2021

Forecast

Year ended March 31, 2021

19.7 billion yen

+3.2 billion yen - Increase in profit on increase in sales volumes

+2.5 billion yen - Changes in product composition

+400 million yen - Changes in sales unit price

-3.4 billion yen - Increase in fixed costs

-1.3 billion yen - Increase in advertising and promotional costs

-500 million yen - Increase in raw materials costs -200 million yen - Other

20.5 billion yen

Year ending March 31, 2022 (forecast)

Details of Consolidated Operating Profit by Segment

			Factors behind changes for the three months
		FY2020		ended June 30, 2021

	Factors behind changes	full year		Dairy	Beverage	Feed-


			Total	and	stuffs	Other
			Products
				Dessert	and Seed


【Marginal profit】
	Changes in sales unit	10	4	0	1	2	0
	price

	Changes in sales volume	(18)	4	(1)	5	0	0

	Changes in product	1	6	1	5	0	0
	composition

	Changes in raw materials	1	(1)	0	(1)	0	0
	costs

	Changes in operating	(10)	2	0	2	0	0
	costs

	Other	12	5	4	1	0	0
	Subtotal	(4)	20	4	13	2	0
【Fixed costs and others】
	Changes in advertising	11	(6)	0	(6)	0	0
	and promotional costs

	Changes in fixed costs	10	0	(2)	2	(1)	0
	Subtotal	21	(6)	(2)	(4)	(1)	0
	Total	17	14	2	9	1	0

Quarterly change (cumulative)

1Q	2Q	3Q	4Q

(1)

(6)

(Unit: 100 million yen) (Amounts rounded down to the nearest 100 million yen)

【Forecast】 Factors behind changes for the year ending March 31, 2022 (FY2021), full year

Factors behind changes		Dairy	Beverage	Feed-

	Total	and	stuffs	Other
	Products
		Dessert	and Seed


【Marginal profit】
Changes in sales unit	4	(2)	4	1	1
price

Changes in sales volume	32	17	13	0	2

Changes in product	25	2	23	0	0
composition

Changes in raw materials	(5)	(1)	(4)	0	0
costs

Changes in operating	0	(1)	1	0	0
costs

Other	(2)	(2)	0	0	0
Subtotal	54	13	37	1	3
【Fixed costs and others】
Changes in advertising	(13)	(2)	(12)	0	0
and promotional costs

Changes in fixed costs	(34)	(18)	(12)	(2)	(3)
Subtotal	(47)	(20)	(24)	(2)	(3)
Total	7	(7)	13	(1)	0

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. "Factors behind changes" in the above forecast were prepared assuming that the accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021.

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