Consolidated Financial Summary for the Fiscal Year Ended March 31, 2025

May 9, 2025

Company name: Morinaga & Co., Ltd. Stock listing: Tokyo Stock Exchange

Stock code: 2201 URL: https://www.morinaga.co.jp/company/english/ Representative: Shinya Mori, Representative Director, President and COO

Contact: Natsuko Okamoto, General Manager, Corporate Communication Division TEL +81-3-3456-0150

Scheduled date for general meeting of shareholders: June 27, 2025 Scheduled date for commencement of dividend payments: June 30, 2025 Scheduled date to submit the Annual Securities Report: June 26, 2025 Supplementary documents for financial results: Yes

Financial results briefing: Yes (for institutional investors and analysts)

(The figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 - March 31, 2025)

   1. Consolidated operating results (The percentages are year-on-year percentage changes.)

      	Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      Year ended Mar. 31, 2025	228,957	7.3	21,266	4.9	22,304	6.0	17,710	16.9
      Year ended Mar. 31, 2024	213,368	9.8	20,273	33.1	21,039	33.5	15,154	50.6

      (Note) Comprehensive income: Year ended March 31, 2025: 17,201 million yen (-15.5%)

      Year ended March 31, 2024: 20,361 million yen (94.2%)

      	Net income per share	Diluted net income per share	ROE	Ordinary income to total asset ratio	Operating income to net sales ratio
      Year ended Mar. 31, 2025 Year ended Mar. 31, 2024	Yen 200.85 165.60	Yen - -	% 13.5 11.8	% 10.3 9.8	% 9.3 9.5

      (Reference) Equity in net gain (loss) of affiliated companies: Year ended March 31, 2025: -184 million yen

      Year ended March 31, 2024: 0 million yen

      (Note) The Company conducted a two-for-one stock split of common shares on January 1, 2024. Net income per share is calculated assuming that the stock split had been conducted at the beginning of the previous fiscal year.

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      	Million yen	Million yen	%	Yen
      Year ended Mar. 31, 2025	209,986	132,393	62.3	1,523.09
      Year ended Mar. 31, 2024	223,644	132,653	58.7	1,448.01

      (Reference) Equity: Year ended March 31, 2025: 130,865 million yen

      Year ended March 31, 2024: 131,202 million yen

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of the year
   Year ended Mar. 31, 2025 Year ended Mar. 31, 2024	Million yen 10,763 30,174	Million yen (9,837) (5,345)	Million yen (18,008) (14,073)	Million yen 30,845 47,101

2. Dividends

   	Annual dividends					Total dividends (annual)	Payout ratio (consolidated)	Ratio of dividends to net assets (consolidated)
   	End of 1Q	End of 2Q	End of 3Q	Year end	Total
   Year ended Mar. 31, 2024 Year ended Mar. 31, 2025	Yen - -	Yen 0.00 0.00	Yen - -	Yen 55.00 60.00	Yen -60.00	Million yen 4,987 5,160	% 33.2 29.9	% 4.0 4.0
   Year ending Mar. 31, 2026 (forecast)	-	32.50	-	32.50	65.00		30.7

   (Note) The Company conducted a two-for-one stock split of common shares on January 1, 2024. The total annual dividend for the year ended March 31, 2024 is not shown as a simple addition is not possible due to the stock split.

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2026 (April 1, 2025 - March 31, 2026)

(The percentages are year-on-year percentage changes.)

• Notes

  1. Important changes in the scope of consolidation during the period: None

  2. Changes in accounting policies, changes of accounting estimates, and restatement

     1. Changes in accounting policies associated with revisions to accounting standards: Yes

     2. Changes in accounting policies other than changes in (i): None

     3. Changes in accounting estimates: None

     4. Restatement: None

        (Note) For details, please see "(Changes in accounting policies), (5) Notes to Consolidated Financial Statements, 3.

        Consolidated Financial Statements and Major Notes" on page 17 of the Accompanying Materials.

  3. Number of shares issued (common shares)

     1. Number of shares issued at end of period (including treasury stock)

        Year ended March 31, 2025: 88,011,638 Year ended March 31, 2024: 92,714,538

     2. Number of shares of treasury stock at end of period

        Year ended March 31, 2025: 2,090,656 Year ended March 31, 2024: 2,105,446

     3. Average number of shares during the period

        Year ended March 31, 2025: 88,177,236 Year ended March 31, 2024: 91,510,219

• The Company conducted a two-for-one stock split of common shares on January 1, 2024. Net income per share is calculated assuming that the stock split had been conducted at the beginning of the previous fiscal year. In addition, the number of shares of treasury stock at end of period includes the Company's shares held by the officer compensation Board Incentive Plan (BIP) trust (80,784 shares in the fiscal year ended March 31, 2025 and 68,362 shares in the fiscal year ended March 31, 2024). The Company's shares held by the officer compensation BIP trust are included in shares of treasury stock that are deducted in the calculation of the average number of shares during the period.

(Reference) Overview of non-consolidated financial results

Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 - March 31, 2025)

1. Non-consolidated operating results (The percentages are year-on-year percentage changes.)

   	Net sales		Operating income		Ordinary income		Net income
   Year ended Mar. 31, 2025 Year ended Mar. 31, 2024	Million yen 183,019 173,340	% 5.6 7.5	Million yen 9,881 10,517	% (6.0) (7.8)	Million yen 13,319 11,450	% 16.3 (7.4)	Million yen 11,779 8,410	% 40.1 6.8

   	Net income per share	Diluted net income per share
   	Yen	Yen
   Year ended Mar. 31, 2025	133.59	-
   Year ended Mar. 31, 2024	91.91	-

   (Note) The Company conducted a two-for-one stock split of common shares on January 1, 2024. Net income per share and net assets per share are calculated assuming that the stock split had been conducted at the beginning of the previous fiscal year.

2. Non-consolidated financial position

   	Total assets	Net assets	Equity ratio	Net assets per share
   	Million yen	Million yen	%	Yen
   Year ended Mar. 31, 2025	176,289	94,717	53.7	1,102.38
   Year ended Mar. 31, 2024	196,926	102,226	51.9	1,128.21

   (Reference) Equity: Year ended March 31, 2025: 94,717 million yen

   Year ended March 31, 2024: 102,226 million yen

   • This consolidated financial summary is not subject to audits by certified public accountants or audit corporations.

   • Explanation about the proper use of results forecasts, and additional information

     (Notes regarding forward-looking statements, etc.)

     The results forecasts given in this document are based on assumptions, prospects, and future business plans, currently available on the date this document was published. Actual results may differ from these forecasts for a variety of reasons.

     Morinaga & Co., Ltd. (2201) Financial Summary for the Fiscal Year Ended March 31, 2025

     • Accompanying Materials - Contents

1. Overview of Operating Results, etc 2

   1. Overview of Operating Results for the Fiscal Year Ended March 31, 2025 2

   2. Overview of Financial Position for the Fiscal Year Ended March 31, 2025 5

   3. Overview of Cash Flows for the Fiscal Year Ended March 31, 2025 5

   4. Future Outlook 6

   5. Capital Policy and Shareholder Return Policy 7

2. Basic Policy for the Selection of Accounting Standards 8

3. Consolidated Financial Statements and Major Notes 9

   1. Consolidated Balance Sheets 9

   2. Consolidated Statements of Operations and Consolidated Statements of Comprehensive

      Income 11

   3. Consolidated Statements of Changes in Net Assets 13

   4. Consolidated Statements of Cash Flows 15

   5. Notes to Consolidated Financial Statements 17

(Notes on the going concern assumption) 17

(Notes if there is a significant change in the amount of shareholders' equity) 17

(Basis for preparing consolidated financial statements) 17

(Changes in accounting policies) 17

(Additional information) 18

(Consolidated statements of operations) 18

(Consolidated statements of cash flows) 20

(Segment information) 20

(Revenue recognition) 23

(Per-share information) 23

(Significant subsequent events) 24

* Reference Materials: Supplementary Materials for the Consolidated Financial Summary for the Fiscal Year Ended March 31, 2025

1

Morinaga & Co., Ltd. (2201) Financial Summary for the Fiscal Year Ended March 31, 2025

Previously, overseas sales in the Direct Marketing Business were included under "China, Taiwan, Exports, etc." However, the method of classification was changed to include such sales in the Direct Marketing Business starting from the beginning of the fiscal year under review. As a consequence, in the comparative analysis below, comparisons and analysis with the previous fiscal year have been made based on figures after the reclassification.

During the fiscal year under review, the Japanese economy showed signs of a gradual recovery, supported by an improvement in the employment and income environment and an increase in inbound tourism consumption. On the other hand, as domestic prices continue to rise due to soaring raw material prices and the impact of foreign exchange rates, consumption appears to be slowing, especially for food and other non-durable goods, as consumers become more conscious of the need to economize. In addition, the environment surrounding business activities remains uncertain, including concerns about a global economic slowdown due to unstable international conditions and United States tariff policies. Under these circumstances, the Group formulated the 2024 Medium-Term Business Plan (MTBP)-the second stage of laying a path toward achieving the 2030 Business Plan-and in the first year of this MTBP, it strengthened each business to create a virtuous cycle of growth potential and capital efficiency aimed at establishing a trajectory for dramatic growth.

Consequently, net sales increased by ¥15,589 million (+7.3%) year on year to ¥228,957 million, led chiefly by strong performance in the Confectionery & Foodstuffs Business and Frozen Desserts Business.

In terms of profit, despite the impact of soaring raw material prices and other factors, operating income increased to ¥21,266 million, up ¥993 million (+4.9%) year on year, due to growth in sales and countermeasures centered on price revisions. Ordinary income also increased by ¥1,265 million (+6.0%) year on year, to ¥22,304 million. Profit attributable to owners of parent was ¥17,710 million, up

¥2,556 million (+16.9%) year on year, due to partly the recording of extraordinary income from the sale of cross-shareholdings.

The following is a summary of consolidated results by business segment.

Confectionery & Foodstuffs Business

In the biscuit category, the in-store turnover of Morinaga Biscuits did slow partly due to a temporary reduction in in-store exposure opportunities following the price revisions in September, but largely recovered toward the end of the fiscal year as expected. In addition, promotions centered around the 30th anniversary of Chocochips Cookie, and the launch of new products contributed to an increase in the brand's overall sales year on year.

In the sugar confectionary category, sales of HI-CHEW increased significantly year on year, driven by continued strong domestic demand due to measures to stimulate demand through promotions leveraging its 50th anniversary and the launch of new products, as well as the capture of inbound demand. Sales of Morinaga Ramune also increased significantly year on year, with both the pouch form of Otsubu Ramune and the bottle form continuing to sell well due to enhanced promotions and in-store exposure leading up to the entrance exam season.

In the chocolate category, sales of Carré de chocolat increased year on year, supported by strong sales of Cacao 70 as demand for high-cacao-content chocolate continued to grow even after the price revisions in February. Sales of DARS increased year on year due to steady sales of core products DARS Milk and Shiroi DARS even after the price revisions in February. Sales of Chocoball increased year on year, with efforts to strengthen in-store exposure and increased buzz through media exposure contributing to strong sales even after the price revisions in March.

In the foodstuffs category, sales of Morinaga Cocoa increased significantly year on year through ongoing efforts to stimulate demand as a health brand, supported by strong performance, particularly

2