Toyo Suisan Kaisha : Consolidated Financial Results for the Three Months Ended June 30, 2022＜under J-GAAP＞

Translation

Company name: Listing: Securities code: URL: Representative: Contact:

July 29, 2022

Consolidated Financial Results

for the Three Months Ended June 30, 2022

J-GAAP>

Toyo Suisan Kaisha, Ltd.

Prime Market of the Tokyo Stock Exchange 2875

https://www.maruchan.co.jp/

Masanari Imamura, Representative Director and President Takayoshi Hirano, General Manager of Accounting Department

TEL: [phone] (from overseas)
Scheduled date of filing of quarterly securities report:	August 12, 2022
Scheduled date of start of dividend payment:	-
Preparation of quarterly results presentation materials:	Yes
Holding of quarterly results briefing meeting:	None

(Amounts less than one million yen have been omitted.)

1. Consolidated Operating Results for the First Three Months of FY2023 (from April 1, 2022 to June 30, 2022)

(1)	Consolidated Operating Results									(Percentages indicate year-on-year changes.)
					Net sales			Operating profit		Ordinary profit	Profit attributable to
								owners of parent
	Three months ended		Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
	Jun. 30, 2022			103,127		23.3			10,727		27.7			11,330		25.9		8,649	34.3
	Jun. 30, 2021			83,640		(2.3)		8,399		(19.1)		8,996		(18.7)		6,440	(23.3)
	Note:	Comprehensive income	Three months	ended	June 30, 2022:		23,793 million yen	[310.6%]
				Three months ended June 30, 2021:	5,795 million yen	[(27.2)%]
				Basic earnings		Diluted earnings
					per share				per share
	Three months ended						Yen					Yen
	Jun. 30, 2022						84.69					-
	Jun. 30, 2021						63.06					-
(2)	Consolidated Financial Position
				Total assets			Net assets				Equity ratio
					Millions of yen		Millions of yen				%
	As of Jun. 30, 2022			472,550			385,752				79.0
	As of Mar. 31, 2022			454,670			367,145				78.1
	Reference: Equity
		As of June 30, 2022:	373,468 million yen
		As of March 31, 2022:	354,882 million yen
2.	Dividends
										Full Year Dividends
			1st quarter-end	2nd quarter-end	3rd quarter-end		Year-end		For the year
					Yen				Yen			Yen		Yen			Yen
	FY2022			-			40.00			-		50.00			90.00
	FY2023			-
	FY2023 (Forecast)							40.00			-			50.00			90.00
Note:	Revisions to the dividends forecasts most recently announced: None

3. Consolidated Results Forecasts for FY2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
Half year	194,000		13.8	16,000	8.1	16,700	6.3	11,300	3.0	110.65
Full year	405,000		12.0	36,500	22.7	38,000	19.4	27,000	20.5	264.37

Note: Revisions to the results forecasts most recently announced: None

• Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Application of specific accounting procedures for preparation of the quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to amendments to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of shares issued (common stock)
6. 1. Number of shares issued at end of period (including treasury shares)

	As of June 30, 2022	110,881,044 shares
	As of March 31, 2022	110,881,044 shares
b. Number of treasury shares at end of period
	As of June 30, 2022	8,753,353 shares
	As of March 31, 2022	8,753,303 shares

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

Three months ended June 30, 2022	102,127,691 shares
Three months ended June 30, 2021	102,127,870 shares

• Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
• Explanation related to the appropriate use of the results forecasts and other items warranting special mention(Caution regarding forward-looking statements)
  Forward-looking statements in this document, including the results forecasts, etc., are based on the information available as of the date of the release of this document and the preconditions that the Company deemed to be reasonable; they are not meant to be a commitment by the Company, and a variety of factors in the future may cause actual results to differ materially from these forecasts. Please refer to Section: "(3) Explanation of forward-looking information, including consolidated results forecasts" of "1. Qualitative Information on Quarterly Consolidated Financial Results for the Three Months Ended June 30, 2022" on page 3 of the attachments for the preconditions for the results forecasts and items to exercise caution in the use of these results forecasts.

Index of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Results for the Three Months Ended
June 30, 2022.................................................................................................................................................	2
(1)	Explanation of the consolidated operating results....................................................................................	2
(2)	Explanation of the consolidated financial position ..................................................................................	3
(3)	Explanation of forward-looking information, including consolidated results forecasts ..........................	3
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .......................................	4
(1)	Quarterly consolidated balance sheets .....................................................................................................	4
(2)	Quarterly consolidated statements of income and comprehensive income..............................................	6
	Quarterly consolidated statements of income (Cumulative) ....................................................................	6
	Quarterly consolidated statements of comprehensive income (Cumulative) ...........................................	7
(3)	Notes to quarterly consolidated financial statements ...............................................................................	8
	(Notes on going concern assumptions) ....................................................................................................	8
	(Notes in the event of substantial changes in shareholders' equity).........................................................	8
	(Changes in accounting policies) .............................................................................................................	8
	(Segment information) .............................................................................................................................	9

1

1. Qualitative Information on Quarterly Consolidated Financial Results for the Three Months Ended June 30, 2022

(1) Explanation of the consolidated operating results

During the three months ended June 30, 2022, the conditions in the Japanese economy remained challenging due to the impact of the novel coronavirus disease (COVID-19). Looking ahead, although recovery is expected on the back of results from various economic measures amid the restoration of socioeconomic activities toward normalcy as all possible measures against infection are implemented, it is necessary to closely monitor the impact on Japanese and overseas economies caused by COVID-19 and the situation in Ukraine and the impact of fluctuations in financial and capital markets, etc.

Under these circumstances, the Toyo Suisan Group (hereafter, the "Group") has remained committed to its mission "to contribute to society through foods" and "to provide safe and secure foods and services to customers" under the corporate slogan of "Smiles for All." The Group continued to implement further cost reductions and promoted aggressive sales activities in its efforts to face an increasingly competitive sales environment.

As a result, net sales were ¥103,127 million (up 23.3% year on year), operating profit was ¥10,727 million (up 27.7% year on year), ordinary profit was ¥11,330 million (up 25.9% year on year), and profit attributable to owners of parent was ¥8,649 million (up 34.3% year on year) for the period under review.

The foreign exchange rate as of the end of the period was ¥136.64 to the U.S. dollar (¥110.61 to the U.S. dollar as of the end of the corresponding period of the previous fiscal year).

The operating results by segment are as follows.

In the Seafood Segment, with the trend away from voluntarily staying at home to prevent the spread of COVID- 19, among other factors, the volume of sales of products for convenience stores increased. Sales in the foreshore operations in each region and sales of silver salmon products were also favorable. As a result, segment sales were ¥7,349 million (up 17.8% year on year), and segment profit was ¥118 million (down 10.7% year on year) mainly due to rising procurement costs from the impact of surging acquisition prices and high oil prices, as well as rising distribution costs.

In the Overseas Instant Noodles Segment, sales increased amid the continuing high demand compared to before the COVID-19 pandemic, as sales in the U.S. increased for the Ramen series, one of our signature products in bag- type noodles, while sales were also favorable for cup-type noodles such as the Yakisoba series and Bowl series, in addition to Instant Lunch series which is one of our signature products. In Mexico, sales increased due to favorable sales of both cup-type noodles, our signature products, and bag-type noodles. As a result, segment sales were ¥41,555 million (up 72.0% year on year). Segment profit was ¥6,386 million (up 119.3% year on year) mainly due to an increase in sales, despite an increase in raw material costs resulting from higher prices of the main raw materials.

In the Domestic Instant Noodles Segment, amid rising manufacturing costs for both cup-type noodles and bag- type noodles, to steadily supply safe, secure, high-quality products, we revised our prices in June and worked on shoring up demand after the price revision. In cup-type noodles, although we focused sales expansion efforts of our mainstay series Akai Kitsune Udon and Midori no Tanuki Ten Soba, overall cup-type noodle sales declined. Sales increased in bag-type noodles with the launch of our Maruchan ZUBAAAN! series in April, as did sales for the instant noodles overall. As a result, segment sales were ¥21,655 million (up 2.5% year on year) and segment profit was ¥1,273 million (down 52.2% year on year) due to increases mainly in advertising expenses and motive utility costs.

In the Frozen and Refrigerated Foods Segment, with the trend away from voluntarily staying at home to prevent the spread of COVID-19, among other factors, sales of commercial products for restaurants and workplace cafeterias increased. Furthermore, amid rising manufacturing costs, to steadily supply safe, secure, high-quality products, we revised our prices for fresh noodles in April, and sales increased due to our efforts in expanding sales centered on our mainstay Maruchan Yakisoba (Three-MealPackage) series and our Maruchan Cold Fresh Ramen Noodle (Three-MealPackage) series. As a result, segment sales were ¥13,452 million (up 1.4% year on year) and segment profit was ¥1,847 million (up 0.2% year on year) mainly due to an increase in sales and effect of the price revision.

In the Processed Foods Segment, sales increased for freeze-dried products due to the expansion of customers, mainly for the Sozai no Chikara series, a freeze-dried soup product with five packs in one bag, and the increase of opportunities for eating at home, etc. Due to damage to our manufacturing facilities from the earthquake with epicenter off the coast of Fukushima prefecture in March, we paused sales for some of our cooked rice products, leading to decreased sales. As a result, segment sales were ¥4,394 million (down 0.6% year on year), and the segment reported a segment profit of ¥228 million (compared with a segment loss of ¥67 million in the

2

corresponding period of the previous fiscal year) mainly due to a decrease in personnel expenses, despite an increase in motive utility costs.

In the Cold-Storage Segment, as economic activities progressively normalized entering this fiscal year and the global logistics disruptions seen through last year gradually resolved, the volume of products handled by our cold warehouses increased. Furthermore, handling of work related to customs and home deliveries was strong. As a result, segment sales were ¥5,750 million (up 4.7% year on year), and segment profit was ¥689 million (down 0.8% year on year) due to an increase in motive utility costs from rising energy prices, despite an increase in sales and cost reductions from energy-saving measures, etc.

The Other Business Segment consists of mainly the packed lunch/deli food business. Segment sales were ¥8,968 million (up 0.4% year on year) while segment profit was ¥351 million (down 8.6% year on year).

(2) Explanation of the consolidated financial position

At the end of the first quarter of the fiscal year ending March 31, 2023, total assets increased by ¥17,879 million from the previous fiscal year-end to ¥472,550 million, and net assets increased by ¥18,607 million to ¥385,752 million. The main factors contributing to these results are as follows:

The main contributing factors for assets were increases in cash and deposits, and machinery, equipment and vehicles. The main contributing factors for liabilities were a decrease in accrued expenses, despite an increase in notes and accounts payable - trade. The main contributing factors for net assets were increases in retained earnings and foreign currency translation adjustment.

As a result of these factors, the equity ratio was 79.0%.

(3) Explanation of forward-looking information, including consolidated results forecasts

The Company has not changed its consolidated results forecasts for the first six months and the full term of the fiscal year ending March 31, 2023, as announced on May 13, 2022, because it is unclear when the COVID-19 pandemic will be brought under control and it is difficult to rationally calculate the impact on the consolidated results forecasts at this time. If any revisions are necessary in the future, the relevant information will be duly disclosed.

3