Consolidated Financial Statements for the Fiscal Year Ended March 31, 2020

Consolidated Financial Statements for the
Fiscal Year Ended March 31, 2020
April 1, 2019 to March 31, 2020




This document has been translated from the original Japanese as a guide for non-Japanese investors. It
contains forward-looking statements based on a number of assumptions and beliefs made by management
in light of information currently available. Actual financial results may differ materially depended on a
number of factors, including changing economic conditions, legislative and regulatory developments, delay
in new product launches, and pricing and product initiatives of competitors.




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 SUMMARY OF FINANCIAL STATEMENTS (consolidated)
Full Year Results for the Fiscal Year Ended March 31, 2020
Calbee, Inc. May 14, 2020
Stock exchange listings: Tokyo 1st section, code number 2229
URL: https://www.calbee.co.jp/en/ Contact: Koichi Kikuchi
Senior Managing Director & CFO
Telephone: +81-3-5220-6222
Representative: Shuji Ito, President & CEO, Representative Director
Scheduled date for the General Meeting of Shareholders: June 24, 2020
Scheduled date for distribution of dividends: June 25, 2020
Scheduled date for submission of the full year financial report: June 25, 2020
Availability of supplementary explanatory material : Available
Results presentation meeting: Yes (conference call for institutional investors and analysts)

1) Consolidated results for the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
(1) Consolidated Operating Results Millions of yen, rounded down
FY ended FY ended
March 31, 2019 March 31, 2020
% change % change
Net sales ............................................................... 248,655 -1.2 255,938 2.9
Operating profit ..................................................... 26,964 0.5 27,664 2.6
Ordinary profit ....................................................... 27,432 4.8 27,391 -0.1
Profit attributable to owners of parent ................. 19,429 12.1 17,539 -9.7
Earnings per share (¥).......................................... 145.39 131.22
Earnings per share (diluted) (¥) ........................... 145.34 131.21
Return on equity (%) 13.2 11.1
Ordinary profit to total assets ratio (%) 13.9 13.1
Operating profit to sales ratio (%) 10.8 10.8
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.
2. Comprehensive income: FY ended March 31, 2020: ¥14,963 million (-25.4%)
FY ended March 31, 2019: ¥20,066 million (18.4%)
3. Share of profit (loss) of entities accounted for using equity method: FY ended March 31, 2020: ¥9 million
FY ended March 31, 2019: -¥8 million
(2) Consolidated Financial Position Millions of yen, rounded down
As of March 31, 2019 As of March 31, 2020
Total assets........................................................... 202,750 214,967
Net assets ............................................................. 160,490 169,632
Shareholders’ equity/total assets (%) .................. 75.9 75.9
Net assets per share (¥) ....................................... 1,151.71 1,221.19
Shareholders’ equity: As of March 31, 2020: ¥163,242 million
As of March 31, 2019: ¥153,931 million
(3) Consolidated Cash Flows Millions of yen, rounded down
FY ended March 31, 2019 FY ended March 31, 2020
Cash flows from operating activities 27,620 40,449
Cash flows from investing activities (28,347) (13,462)
Cash flows from financing activities (6,227) (6,278)
Cash and cash equivalents at end of period 35,425 55,742
2) Dividends
Yen
FY ended FY ended FY ending
March 31, 2019 March 31, 2020 March 31, 2021 (forecast)
Interim period per share ..................................... 0.00 0.00 0.00
Year-end dividend per share................................ 48.0 50.0 50.0
Annual dividend per share ................................... 48.0 50.0 50.0
Total dividend amount (millions of yen)………… 6,428 6,696 —
Dividend payout ratio (consolidated) (%)……… 33.0 38.1 42.6
Net assets to dividends ratio (consolidated) (%) 4.4 4.2 —
Note: Total dividend amounts for FYs ended March 31, 2019 and March 31, 2020 include dividends of ¥12 million and ¥12 million,
respectively, for Calbee shares held in trust
3) Consolidated forecasts for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)
Millions of yen
% change
Net sales ............................................................... 270,000 5.5
Operating profit ..................................................... 24,500 -11.4
Ordinary profit ....................................................... 24,000 -12.4
Profit attributable to owners of parent ................. 15,700 -10.5
Earnings per share (¥).......................................... 117.45
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.

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 Notes
(1) Transfers of important subsidiaries during the period (transfers of specified subsidiaries resulting in changes in the
scope of consolidation): None


(2) Changes in accounting policy, changes in accounting estimates, and restatements:
1. Changes in accounting policies following revisions of accounting standards: None
2. Changes in accounting policies other than 1: None
3. Changes in accounting estimates: None
4. Restatements: None

(3) Number of outstanding shares (common stock)

As of March 31, 2019: As of March 31, 2020:
1. Number of outstanding shares 133,921,800 shares 133,929,800 shares
(including treasury shares)
2. Number of treasury shares 267,747 shares 254,501 shares
Fiscal year to March 31, Fiscal year to March 31,
2019: 2020:
3. Average number of shares during the period 133,637,330 shares 133,669,238 shares

Note: Regarding Calbee stock held in trust as treasury stock within shareholders’ equity, the number of treasury shares
includes 253,590 of these shares as of March 31, 2020 and 266,915 of these shares as of March 31, 2019, and
the average number of shares excludes 257,959 treasury shares during the year to March 31, 2020, and 275,221
treasury shares during the year to March 31, 2019.

(Reference) Non-consolidated results for the fiscal year ended March 31, 2020
(1) Non-consolidated operating results Millions of yen, rounded down
FY ended March 31, 2019 FY ended March 31, 2020
% change % change
Net sales 194,096 3.7 197,658 1.8
Operating profit 24,708 -3.4 24,370 -1.4
Ordinary profit 25,831 -0.5 24,433 -5.4
Net profit 15,825 -10.8 16,210 2.4
Earnings per share (¥) 118.42 121.28
Earnings per share (diluted) (¥) 118.38 121.27

(2) Non-consolidated financial position Millions of yen, rounded down
As of March 31, 2019 As of March 31, 2020
Total assets 186,460 199,004
Net assets 145,692 155,185
Shareholders’ equity/total assets (%) 78.1 78.0
Net assets per share (¥) 1,090.05 1,160.91
Shareholders’ equity: As of March 31, 2020: ¥155,185 million, As of March 31, 2019: ¥145,689 million


Financial Statements are not subject to audit by a certified public accountant or audit firm

Appropriate use of financial forecasts and other items
1. Forecasts, etc., recorded in this document include forward-looking statements that are based on management’s
estimates, assumptions and projections at the time of publication. A number of factors could cause actual results
to differ materially from expectations. For further information on assumptions used in forecasts, please see Page 9,
1. Overview of Operating Results (4) Consolidated forecasts.
2. The earnings per share forecast for the fiscal year ending March 31, 2021 is calculated using 133,675,299
shares as the expected average number of shares for the period.
3. Calbee, Inc. has scheduled a financial results phone conference for institutional investors and analysts for May 15,
2020. An audio recording of the conference will be made available on our Japanese website after the conference.




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Contents
1. Overview of operating results
(1) Overview of business performance……………………………………………………………..………… 5
(2) Overview of financial position……………………………………………………………………………… 9
(3) Overview of cash flows…...………………………………………………………………………………… 9
(4) Consolidated forecasts……………………………………………………………………………………... 9
2. Basic policy for profit distribution and dividends for fiscal year to March 2020 and 2021 10
3. Basic approach to selection of accounting standards 10
4. Consolidated financial statements and key notes
(1) Consolidated balance sheets…...…………………………………………………………………………. 11
(2) Consolidated statements of income and comprehensive income……………………………………… 13
(3) Consolidated statements of changes in shareholders’ equity………………………………………...... 15
(4) Consolidated statements of cash flows…………………………………………………………………… 17
(5) Notes to consolidated financial statements………………………………………………………………. 19
Notes related to going concern assumption…………………………………………………………….. 19
Segment information and other…………………………………………………………………………… 19
Per share information………………………………………………………………………………………. 19
Subsequent events…………………………………………………………………………………………. 20




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1. Overview of operating results

(1) Overview of business performance
(All comparisons are with the same period of the previous fiscal year, unless stated otherwise.)

During the fiscal year ended March 2020, in the global economy, in addition to the U.S.-China trade
war and the slowdown of the Chinese economy, the opacity about the direction of the economy
increased rapidly affected by the worldwide expansion of new coronavirus infections that began in 2020.
During the Japanese economy was on a moderate recovery trend in 2019, an impact of the consumption
tax hike that began in October on a consumer behavior was seen. After that, the New Year has come
and the expansion of new coronavirus infections significantly reduced the demand from inbound tourism
and brought voluntary restrictions on outing, and these began to have impacts on corporate
performance. On the other hand, in the food industry, changes in consumption behavior occurred, such
as stockpiling preserved foods and increasing consumption of foods at home with restrictions on outings.
Because of these circumstances in domestic and overseas, in the Calbee group, the number of sales of
gift products and the number of visitors to the company-owned stores decreased from the fourth quarter
of this fiscal year. However, there were no significant impacts in the financial results for this fiscal year
due to offset by the increased consumption of foods at home.

In May 2019, we formulated long-term vision (the vision for 2030) and the five-year medium-term
business plan (from the fiscal year ending March 2020 to March 2024). Under the core policy of
"transformation and challenge toward achieving the next generation growth", we implement six key
initiatives as follows:
1: Existing domestic business: Create new value and realize high profit
2: Overseas business: Establish revenue-generating bases in 4 key regions
3: New businesses: Establish businesses in new food areas
4: Management base: Reform base to support global management and sustainable growth
5: Co-creation with society: Achieve a sustainable society
6: Collaboration with PepsiCo: Strengthen collaboration with PepsiCo.

In the domestic business, we conducted price hike and content standard revisions for some snack
products against the background of rising costs such as distribution costs and raw material costs. We
also strengthened our product lineup by launching new texture variants potato chips that meet diverse
consumer needs. In cereal foods, we launched new brand focused on functional benefits to develop new
customer base. In February 2020, in order to enter the sweet potato business, we concluded a stock
purchase agreement to acquire shares of Potato Kaitsuka Co. Ltd., which is engaged in the processing
and wholesaling of sweet potatoes and the direct sales of baked sweet potatoes and other products
(consolidated in April 2020). We will strive for expansion of the sweet potato business by leveraging
synergies with our expertise in potato.

In overseas business, we focused on business expansion to establish revenue-generating bases in
the 4 key regions of North America, Greater China, the United Kingdom and Indonesia. In North
America, we acquired Warnock Food Products, Inc (hereafter referred to as “Warnock”), a U.S.
contracted savory snack manufacturer, in October 2019 in order to strengthen product development
capability and expansion our snack product portfolio in the U.S. In Greater China, we strengthened sales
activities of cereal and snack foods in e-commerce. Moreover, in January 2020, we established Calbee
(China) Co., Ltd. to strengthen our sales structure and further penetrate Calbee brand with expansion
sales channels for retail stores in China. In the UK, we integrated Seabrook Crisps Limited (hereafter
referred to as “Seabrook”), which was acquired in the previous fiscal year, and Calbee (UK) Ltd, an
existing subsidiary in the UK, to strengthen management base and pursue cost reduction. In Indonesia,
we launched new products for expansion of selling potato chips.



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 Consolidated net sales for the fiscal year ended March 2020 increased 2.9% to ¥255,938 million.
Operating profit increased 2.6% to ¥27,664 million, and operating margin remained year on year at
10.8%. Despite rising distribution costs and packaging costs in the domestic business, both the effect on
price hike for domestic snack foods and the increases in sales in domestic and overseas businesses
contributed to increase in operating profit. Ordinary profit decreased 0.1% to ¥27,391 million, mainly due
to a foreign exchange loss of ¥445 million. Profit attributable to owners of the parent decreased 9.7% to
¥17,539 million, due to the recording of ¥1,639 million impairment loss on domestic and overseas
facilities, in addition to the recording of ¥2,378 million gain on sales of shares of subsidiaries and
associates under extraordinary income resulting from transfer of shares of a consolidated subsidiary in
the previous fiscal year.

Millions of yen, rounded down
FY ended FY ended Growth on
March 31, 2019 March 31, 2020 Growth in local
yen currency
Amount % Amount % basis
Domestic sales 208,193 83.7 210,470 82.2 ＋1.1% ＋1.1%
Overseas sales 40,461 16.3 45,468 17.8 ＋12.4% ＋15.8%
Total 248,655 100.0 255,938 100.0 ＋2.9% ＋3.5%


Results by business are as follows.
Millions of yen, rounded down
FY ended FY ended
Sales March 31, 2019 March 31, 2020
Amount Amount Growth (%)
1) Production and sale of snack and
246,064 254,092 ＋3.3
other foods business
Domestic production and sale of
205,602 208,624 ＋1.5
snack and other foods business
Domestic snack foods 180,499 182,086 ＋0.9
Domestic cereals 23,817 25,157 ＋5.6
Other domestic foods 1,285 1,380 ＋7.4
Overseas production and sale of
40,461 45,468 ＋12.4
snack and other foods business
Overseas snack foods 35,178 38,998 ＋10.9
Overseas cereals 5,283 6,469 ＋22.5
2) Other businesses 2,590 1,846 －28.7
Total 248,655 255,938 ＋2.9

1) Production and sale of snack and other foods business
Domestic production and sale of snack and other foods business
・Domestic snack foods:
Sales of domestic snack foods increased year on year. Although sales of the Potato Chips subject
to price hike declined in this fiscal year, increased sales of Potato Chips not to subject to price hike
and demand for flour-based snacks contributed to an increase in sales.




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Sales of domestic snack foods by product are as follows.
Millions of yen, rounded down
FY ended FY ended
Sales
March 31, 2019 March 31, 2020
Amount Amount Growth (%)
Potato-based snacks 133,068 133,654 ＋0.4
Potato Chips 84,129 86,189 ＋2.4
Jagarico 37,402 36,390 －2.7
Jagabee / Jaga Pokkuru 11,537 11,075 －4.0
Flour-based snacks 20,775 21,663 ＋4.3
Kappa Ebisen 9,705 10,069 ＋3.7
Sapporo Potato, etc. 11,069 11,594 ＋4.7
Corn- and bean-based snacks 15,882 15,651 －1.5
Other snacks 10,773 11,116 ＋3.2
Domestic snack foods total 180,499 182,086 ＋0.9

- Sales of potato-based snacks increased year on year. Sales of products not subject to price
hike including Potato Chips Giza-Giza and other products increased, despite declined sales of
regular items including Usu-Shio-Aji causing an effect of price hike in this fiscal year. In
addition, strengthening our product lineup by launching new texture variants potato chips, such
as Crunch Potato and Thin Potato, contributed to sales. In the Jagarico sales, sales of regular
items including Jagarico-salad were strong, otherwise Tomorico and Edamarico, which were
launched nationwide in the previous fiscal year, declined. Sales of Jagabee / Jaga Pokkuru
declined year on year. In addition to sluggish sales of Jagabee, sales of Jaga Pokkuru, a gift
product, which had expanded in sales until the third quarter of this fiscal year, slowed sharply
due to decline in the demand from inbound tourism caused by the expansion of coronavirus in
the fourth quarter and turned decreased.
- Sales of flour-based snacks increased year on year due to increased demand resulting from
price hike of Potato Chips and the success of product renewals for Kappa Ebisen in the fourth
quarter.
- Sales of corn- and bean-based snacks decreased year on year due to the impact of the
termination of the licensing agreement for Garrett Popcorn Shops.
- Sales of other snacks increased year on year due mainly to an increase in sales of the
individual portion snacks miino.

・Domestic cereals:
Sales of domestic cereals increased year on year due to growth in both domestic consumption
and for retail store in Greater China. Regarding the cereals for domestic consumption, amid
sales of Frugra Less Carbohydrate remained strong, in the fourth quarter, demand for regular
items of Frugra increased as preserved foods because consumer behavior changed due to
voluntary restrictions on outing with the expansion of coronavirus. In addition, the new bland
Granola + (Granola Plus), which specializes in nutritional supplements, contributed to sales.




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 Overseas production and sale of snack and other foods business
Sales of overseas production and sale of snack and other foods business by region are as follows.
Millions of yen, rounded down
FY ended FY ended
Sales
March 31, 2019 March 31, 2020
Amount Amount Growth (%)
North America 9,941 10,576 ＋6.4
Greater China* 11,339 12,771 ＋12.6
United Kingdom 4,193 6,047 ＋44.2
Indonesia 3,854 4,351 ＋12.9
Other regions** 11,131 11,721 ＋5.3
Overseas production and sale of
40,461 45,468 ＋12.4
snack and other foods business total
*Greater China: China, Taiwan and Hong Kong
**Other regions: Korea, Thailand, Singapore, Philippines and Australia

- In North America, sales increased year on year due to the new consolidation of Warnock, the
acquired company, in November 2019, despite of a decline in demand for Harvest Snaps, a bean-
based snack.
- In Greater China, sales increased year on year due to an increase in sales of cereal product
Frugra and snack foods such as Jaga Pokkuru through e-commerce.
- In the UK, sales increased significantly year on year supported by sales of potato chips of
Seabrook brand, acquired in October 2018.
- In Indonesia, sales increased year on year mainly due to contributions in sales of Japota, a new
flat-type potato chips.
- In the other regions, sales increased year on year mainly due to sales expansion of Harvest
Snaps in Australia.

2) Other businesses
Other businesses include logistics and promotional tool sales. Sales decreased year on year due to
the transfer of all shares of consolidated subsidiary engaged in the promotional tools business in
September 2018.




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(2) Overview of financial position
(All comparisons are with the end of the previous fiscal year, unless stated otherwise.)

Total assets as of March 31, 2020 were ¥214,967 million, an increase of ¥12,217 million. The primary
factors contributing to this outcome were increases in cash and deposits and in goodwill resulting from the
acquisition of Warnock.
Liabilities increased ¥3,074 million to ¥45,334 million mainly due to increases in accounts payables.
Net assets increased ¥9,142 million to ¥169,632 million mainly due to increase in retained earnings.
The shareholders’ equity ratio was 75.9%, which remained year on year.

(3) Overview of cash flows
Cash and cash equivalents as of March 31, 2020 were ¥55,742 million, ¥20,317 million higher than at
the end of the previous fiscal year.

Cash flows from operating activities
Operating activities resulted in net cash inflow of ¥40,449 million, an increase in cash inflow of ¥12,828
million, due to a decrease in accounts receivables - trade. The decrease in accounts receivables - trade
is due to a bank holiday on the last day of the previous fiscal year.

Cash flows from investing activities
Investing activities resulted in a net cash outflow of ¥13,462 million, a decrease in cash outflow of ¥14,884
million, mainly due to an increase in inflow from the redemption of investment securities. Purchase of
shares of subsidiaries resulting in change in scope of consolidation in this fiscal year is due to acquisition
of Warnock.

Cash flows from financing activities
Financing activities resulted in a net cash outflow of ¥6,278 million, an increase in cash outflow of ¥51
million, primarily due to an increase in outflow of dividends paid.


(4) Consolidated forecasts
Based on the medium-term business plan (from the fiscal year ending March 2020 to March 2024)
formulated in May 2019, by undertaking transformation and challenges, we will achieve sustainable
growth through building a foundation in response to changes in the business environment.

As a business policy for the fiscal year ending March 2021, in the existing domestic businesses, we
will promote cost reduction initiatives to ensure the profits of the snack and to expand customer base of
cereals. In overseas business, we will develop products tailored to the characteristics of each country's
market, and expand sales channel and strengthen promotional activities in order to achieve business
expansion in 4 key regions (North America, Greater China, the UK, and Indonesia). In new businesses,
we will pursue synergies with Potato Kaitsuka Co. Ltd., which became a consolidated subsidiary in April
2020, to achieve expansion in the sweet potato business.

In the business environment of the fiscal year ending March 2021, the impact of the coronavirus
infections has significantly affected the global economy and social life, and the opacity about the future
has increased. We forecast that the business environment will also affect our group's business
operations in domestic and overseas. In the consolidated forecasts for the fiscal year ending March
2021, we consider forecasted impacts on financial results mainly due to changes in demand at this
moment.

In the domestic business, regarding the snack and cereal foods, although there are temporarily
increasing demands with voluntary restrictions on outing at this moment, we forecast these temporary
demands will be neutral in the future. On the other hand, sales of gift snack products such as Jaga

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 Pokkuru will significantly decrease due to the decline in the demand from inbound and domestic tourism
and the close of the company-owned stores. We forecast this situation will remain for a while, and
recover partially toward the end of the fiscal year gradually.

　In the overseas business, although there are increasing demands mainly in e-commerce in Greater
China at this moment, we forecast these temporary demands will return to neutral. In other regions,
demands will decrease impacted by downward of sales activities in retail stores with mainly restrictions
on outing.

Based on the above, for the year ending March 2021, we forecast consolidated net sales increasing
5.5% to ¥270,000 million, operating profit decreasing 11.4% to ¥24,500 million, ordinary profit
decreasing 12.4% to ¥24,000 million, and profit attributable to owners of parent decreasing 10.5% to
¥15,700 million.
　The main exchange rates used as basis for this forecast are 1USD = ¥109, 1RMB = ¥15.60, 1GBP =
¥143 and 1IDR = ¥0.0079.

　The expected progress of convergence of coronavirus may change depending on the future spread
of infections and the extension of regulations in each country. In addition, there would be possibilities
that risks we could not forecast at this moment, such as impacts on supply chain mainly due to delay of
procurement of raw materials, may appear. Because of these reasons, if any revision of the forecasts
is necessary, we will promptly disclose revised forecasts.

2. Basic policy for profit distribution and dividends for fiscal year to March 2020 and 2021

Calbee recognizes that the distribution of profits to shareholders is an important management matter.
Our policy is to consistently and actively distribute profits with a medium-term target consolidated payout
ratio of over 40%, while striving to improve our profitability. We will leverage our internal reserves for capital
investment and other measures aimed at raising our corporate value.
On the basis of our basic policy and in consideration of our consolidated results and financial position,
we plan to pay an annual dividend of ¥50 per share, an increase of ¥2 per share, for the fiscal year ended
March 2020 (to be presented at the 71th Annual General Meeting of Shareholders, June 24, 2020). The
consolidated payout ratio will be 38.1%.
For the fiscal year ending March 2021, we plan an annual dividend of ¥50 per share, for an
effective consolidated payout ratio of 42.6%.
As prescribed by Article 454 Clause 5 of the Companies Act, the Articles of Incorporation stipulate that
the Company is able to pay interim dividends. However, a dividend will be paid once annually upon review
of certain factors including the annual results.


3. Basic approach to selection of accounting standards

With the aims of enhancing management of the business and enabling international comparison of
financial information in capital markets through the unification of accounting standards, Calbee is
considering the adoption of International Financial Reporting Standards (IFRS).




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4. Consolidated financial statements and key notes
(1) Consolidated balance sheets
Millions of yen, rounded down

As of March 31, 2019 As of March 31, 2020

Assets
Current assets
Cash and deposits 12,992 42,909
Notes and accounts receivable - trade 39,736 29,718
Securities 42,760 30,653
Inventories 11,309 11,205

(7)
Other 5,067 5,219
Allowance for doubtful accounts (8)
Total current assets 111,858 119,699
Non-current assets
Property, plant and equipment
Buildings and structures 67,497 67,341
Accumulated depreciation (38,613) (39,358)
Buildings and structures, net 28,883 27,983
Machinery, equipment and vehicles 102,261 105,627
Accumulated depreciation (72,450) (76,023)
Machinery, equipment and vehicles, net 29,811 29,604
Land 11,391 11,270
Leased assets 538 879
Accumulated depreciation (310) (433)
Leased assets, net 228 446
Construction in progress 1,224 1,508
Other 4,463 4,547
Accumulated depreciation (3,451) (3,642)
Other, net 1,012 905
Total property, plant and equipment 72,552 71,718
Intangible assets
Goodwill 5,688 10,953
Other 2,016 2,080
Total intangible assets 7,704 13,034
Investments and other assets
Investment securities 2,222 1,744
Long-term loans receivable 240 180
Deferred tax assets 4,421 4,826
Retirement benefit asset 2,111 2,061

(1)
Other 1,697 1,703
Allowance for doubtful accounts (59)
Total investments and other assets 10,634 10,515
Total non-current assets 90,891 95,267
Total assets 202,750 214,967




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 Millions of yen, rounded down

As of March 31, 2019 As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable – trade 8,987 9,889
Short-term borrowings 1,027 871
Lease obligations 104 134
Accounts payable – other 5,878 7,301
Income taxes payable 5,478 4,657
Provision for bonuses 4,004 4,581
Provision for bonuses for directors (and other
officers) 67 119
Provision for share-based remuneration 35 83
Other 8,459 8,995
Total current liabilities 34,043 36,633
Non-current liabilities
Lease obligations 111 325
Deferred tax liabilities 622 367
Provision for retirement benefits for directors
(and other officers) 286 330
Provision for share-based remuneration for
directors(and other officers) 92 172
Retirement benefit liability 6,531 6,908
Asset retirement obligations 522 527
Other 49 70
Total non-current liabilities 8,216 8,701
Total liabilities 42,260 45,334
Net assets
Shareholders’ equity
Share capital 12,044 12,046
Capital surplus 4,786 4,779
Retained earnings 137,453 148,565
Treasury shares (981) (933)
Total shareholders’ equity 153,303 164,457
Accumulated other comprehensive income
Valuation difference on available-for-sales

(833)
securities 467 129


(511)
Foreign currency translation adjustment 278
Remeasurements of defined benefit plans (119)
Total accumulated other comprehensive income 627 (1,215)
Share acquisition rights 3 －
Non-controlling interests 6,555 6,390
Total net assets 160,490 169,632
Total liabilities and net assets 202,750 214,967




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(2) Consolidated statements of income and comprehensive income
Consolidated statements of income
Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
March 31, 2019 March 31, 2020
Net sales 248,655 255,938
Cost of sales 137,534 140,852
Gross profit 111,120 115,086
Selling, general and administrative expenses 84,156 87,422
Operating profit 26,964 27,664
Non-operating income
Interest income 117 112
Dividend income 44 42
Share of profit of entities accounted for using equity method 1 11
Foreign exchange gains 406 －
Other 281 434
Total non-operating income 852 600
Non-operating expenses
Interest expenses 71 90
Share of loss of entities accounted for using equity method 10 2
Foreign exchange losses － 445
Depreciation 92 122
Loss on valuation of inventories 64 32
Other 145 180
Total non-operating expenses 384 873
Ordinary profit 27,432 27,391
Extraordinary income
Gain on sales of non-current assets 36 9
Gain on sales of shares of subsidiaries and associates 2,378 －
Gain on sales of investment securities 52 1
Subsidy income 106 277
Gain on reversal of loss on cancellation of outsourcing － 137
agreement
Gain on liquidation of business 477 －
Other 2 3
Total extraordinary income 3,053 429
Extraordinary losses
Loss on sales of non-current assets 16 50
Loss on retirement of non-current assets 263 221
Impairment loss 839 1,639
Loss on valuation of investment securities － 18
Loss on sales of shares of subsidiaries and associates 24 －
Retirement benefits for directors 350 －
Loss on sale of businesses 222 －
Loss on cancellation of outsourcing agreement 211 －
Other 87 147
Total extraordinary losses 2,016 2,077
Profit before income taxes 28,469 25,743

(387)
Income taxes – current 9,481 8,925
Income taxes – deferred (394)
Total income taxes 9,093 8,531
Profit 19,375 17,212
Loss attributable to non-controlling interests (53) (327)
Profit attributable to owners of parent 19,429 17,539

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Consolidated statements of comprehensive income
Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
March 31, 2019 March 31, 2020
Profit 19,375 17,212

(212)
Other comprehensive income
Valuation difference on available-for-sale securities (338)
Foreign currency translation adjustment 276 (1,518)
Remeasurements of defined benefit plans, net of tax 626 (392)
Total other comprehensive income 690 (2,248)
Comprehensive income 20,066 14,963
Comprehensive income attributable to:
Owners of parent 20,064 15,697
Non-controlling interests 1 (733)




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(3) Consolidated statements of changes in shareholders’ equity
April 1, 2019 to March 31, 2020
Millions of yen, rounded down
Shareholders’ equity
Total
Retained Treasury
Share capital Capital surplus shareholders’
earnings shares
equity
Balance at beginning of current period 12,044 4,786 137,453 (981) 153,303

Changes of items during period
Issuance of new shares – exercise of

---

share acquisition rights
Forfeiture of share acquisition rights －

Dividends of surplus (6,428) (6,428)

Profit attributable to owners of parent 17,539 17,539

Purchase of treasury shares (0) (0)

Disposal of treasury shares 47 47
Purchase of shares of consolidated
(9) (9)
subsidiaries
Net change of items other than
shareholders’ equity
Total changes of items during period 1 (7) 11,111 47 11,153

Balance at end of current period 12,046 4,779 148,565 (933) 164,457



Accumulated other comprehensive income
Total Share Non-
Valuation Foreign Total net
Remeasurements accumulated acquisition controlling
difference on currency assets
of defined benefit other rights interests
available-for- translation
plans comprehensive
sale securities adjustment
income
Balance at beginning of current period 467 278 (119) 627 3 6,555 160,490

Changes of items during period
Issuance of new shares – exercise of
(0) 3
share acquisition rights
Forfeiture of share acquisition rights (3) (3)
Dividends of surplus (6,428)

Profit attributable to owners of parent 17,539

Purchase of treasury shares (0)

Disposal of treasury shares 47
Purchase of shares of consolidated
(9)
subsidiaries
Net change of items other than
(338) (1,111) (392) (1,842) (165) (2,007)
shareholders’ equity
Total changes of items during period (338) (1,111) (392) (1,842) (3) (165) 9,142

Balance at end of current period 129 (833) (511) (1,215) － 6,390 169,632




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 April 1, 2018 to March 31, 2019
Millions of yen, rounded down
Shareholders’ equity
Total
Retained Treasury
Share capital Capital surplus shareholders’
earnings shares
equity
Balance at beginning of current period 12,033 4,775 123,647 (1,073) 139,383

Changes of items during period
Issuance of new shares – exercise of

---

share acquisition rights
Forfeiture of share acquisition rights －

Dividends of surplus (5,622) (5,622)

Profit attributable to owners of parent 19,429 19,429

Purchase of treasury shares －

Disposal of treasury shares 91 91
Purchase of shares of consolidated
－
subsidiaries
Net change of items other than
shareholders’ equity
Total changes of items during period 10 10 13,806 91 13,920

Balance at end of current period 12,044 4,786 137,453 (981) 153,303



Accumulated other comprehensive income
Total Share Non-
Valuation Foreign Total net
Remeasurements accumulated acquisition controlling
difference on currency assets
of defined benefit other rights interests
available-for- translation
plans comprehensive
sale securities adjustment
income
Balance at beginning of current period 680 57 (745) (7) 7 7,284 146,667

Changes of items during period
Issuance of new shares – exercise of
(3) 18
share acquisition rights
Forfeiture of share acquisition rights －

Dividends of surplus (5,622)

Profit attributable to owners of parent 19,429
Purchase of treasury shares －

Disposal of treasury shares 91
Purchase of shares of consolidated
－
subsidiaries
Net change of items other than
(212) 220 626 634 (729) (94)
shareholders’ equity
Total changes of items during period (212) 220 626 634 (3) (729) 13,822

Balance at end of current period 467 278 (119) 627 3 6,555 160,490




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(4) Consolidated statements of cash flows
Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
March 31, 2019 March 31, 2020
Cash flows from operating activities
Profit before income taxes 28,469 25,743
Depreciation 8,023 8,449
Impairment loss 839 1,639
Amortization of goodwill 758 714
Increase (decrease) in allowance for doubtful accounts (14) (57)
Increase (decrease) in provision for bonuses 285 578
Increase (decrease) in provision for bonuses for directors
(and other officers) (32) 56
Increase (decrease) in provision for share-based
remuneration 33 88
Increase (decrease) in provision for share-based
remuneration for directors － 87
Increase (decrease) in retirement benefit liability 49 (111)
Decrease (increase) in retirement benefit asset 5 2
Increase (decrease) in provision for retirement benefits for (146) 43
directors (and other officers)
Interest and dividend income (162) (154)
Interest expenses 71 90
Foreign exchange losses (gains) (223) 319
Gain on liquidation of business (477) －
Subsidy income (106) (277)
Share of loss (profit) of entities accounted for using equity
method 8 (9)
Loss (gain) on sales of investment securities (2,405) (1)
Loss (gain) on valuation of investment securities － 18
Loss (gain) on sales of non-current assets (20) 41
Loss on retirement of non-current assets 263 221
Decrease (increase) in trade receivables 914 10,092
Decrease (increase) in inventories (504) 194
Increase (decrease) in trade payables (528) 907
Increase (decrease) in accounts payable - other 177 682
Other, net 1,484 234
Subtotal 36,760 49,592
Interest and dividend income received 149 154
Interest paid (71) (88)
Income taxes paid (9,218) (9,209)
Net cash provided by (used in) operating activities 27,620 40,449




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 Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
March 31, 2019 March 31, 2020
Cash flows from investing activities
Purchase of property, plant and equipment (9,390) (8,392)
Proceeds from sales of property, plant and equipment 235 109
Purchase of intangible assets (555) (612)
Proceeds from sales of intangible assets 0 －
Purchase of securities (39,425) (55,035)
Proceeds from redemption of securities 23,826 57,335
Purchase of investment securities (45) (15)
Proceeds from sales of investment securities 93 5
Loan advances (980) (700)
Collection of loans receivable 2,378 800
Payments into time deposits (730) (2,253)
Proceeds from withdrawal of time deposits 355 2,336
Payments for guarantee deposits (89) (99)
Proceeds from refund of guarantee deposits 128 89
Purchase of shares of subsidiaries
resulting in change in scope of consolidation (7,351) (7,305)
Payments for sales of shares of subsidiaries
resulting in change in scope of consolidation (460) －
Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation 3,169 －
Proceeds from subsidy income 106 277
Other, net 387 (2)
Net cash provided by (used in) investing activities (28,347) (13,462)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings (509) (11)
Purchase of treasury shares － (0)
Proceeds from exercise of employee share options 18 3
Proceeds from share issuance to non-controlling － 323
shareholders
Dividends paid (5,621) (6,425)
Dividends paid to non-controlling interests (10) (11)
Repayments of lease obligations (104) (156)
Net cash provided by (used in) financing activities (6,227) (6,278)
Effect of exchange rate change on cash and
cash equivalents 184 (390)
Net increase (decrease) in cash and cash equivalents (6,769) 20,317
Cash and cash equivalents at beginning of period 42,195 35,425
Cash and cash equivalents at end of period 35,425 55,742




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(5) Notes to consolidated financial statements
Notes related to going concern assumption
No applicable items

Segment information and other
The Company has only one segment, “Production and sale of snacks and other foods”, and consequently
does not disclose information for operating segments.

Per Share Information
FY ended FY ended
March 31, 2019 March 31, 2020
Net assets per share (¥) 1,151.71 1,221.19
Earnings per share (¥) 145.39 131.22
Earnings per share (diluted) (¥) 145.34 131.21

Notes: 1) Net assets per share were calculated based on the following:
FY ended FY ended
March 31, 2019 March 31, 2020
Total net assets on consolidated balance sheet
160,490 169,632
(¥ million)
Amount attributable to common stock (¥ million) 153,931 163,242
Main differences (¥ million)
Share acquisition rights 3 ―
Non-controlling interests 6,555 6,390
Number of shares of common stock outstanding
133,921,800 133,929,800
(shares)
Number of shares of common stock as treasury stock
267,747 254,501
(shares)
Number of common shares used for calculating net
133,654,053 133,675,299
assets per share (shares)

2) Earnings per share and earnings per share (diluted) were calculated based on the following:
FY ended FY ended
March 31, 2019 March 31, 2020
Earnings per share
Profit attributable to owners of parent (consolidated)
19,429 17,539
(¥ million)
Profit attributable to owners of parent attributable to
19,429 17,539
common stock (¥ million)
Amount not belonging to common shareholders － －
(¥ million)
Average number of shares during the period (shares) 133,637,330 133,669,238

Earnings per share (diluted)
Profit adjustments attributable to owners of parent
― ―
(¥ million)
Breakdown of additional common shares used for
calculating earnings per share (diluted) (shares)
Subscription rights to shares 50,210 9,849
Number of additional common shares 50,210 9,849
Residual securities not included in the calculation of
profit after adjustment for residual securities due to ―
the fact that these securities had no dilutive effect.




Page 19 of 20
 3) The Company’s own stock in the trust recorded as treasury shares under shareholders’ equity
includes treasury shares excluded from the average number of shares during the period used for
calculating earnings per share and treasury shares excluded from the number of shares
outstanding at the end of the fiscal year used for calculating net assets per share.
During the previous consolidated fiscal year, 275,221 treasury shares, and during the current
consolidated fiscal year 257,959 treasury shares, were excluded from the average number of
shares during the period used for calculating earnings per share and 266,915 treasury shares at
the end of the previous fiscal year and 253,590 treasury shares at the end of the current fiscal year
were excluded from the number of shares outstanding used for calculating net assets per share.

Subsequent events
(Business combinations and other related matters)
Business combination resulting from acquisition
Calbee, Inc. (hereafter referred to as “Calbee”) made the company a wholly owned subsidiary by
acquiring all of the issued common stock and share acquisition rights of Potato Kaitsuka Co. Ltd.
(hereafter referred to as “Potato Kaitsuka”) on April 1, 2020.

(1) Overview of the transaction
1. Name and business description of the acquired company
Name of acquired company: Potato Kaitsuka Co. Ltd.
Description of business: Processing, wholesale, and retail sale of sweet potatoes
2. Reason for business combination
Under our long-term vision (Vision for 2030) announced in May 2019, we aim to establish overseas
markets and new food domains as growth pillars. At the same time, we have positioned "Establishing
businesses in new food areas" as one of the key initiative in our middle-term business plan. The entry
into the sweet potato business by making Potato Kaitsuka a subsidiary will strengthen our efforts to
tackle this key initiative. Potato Kaitsuka started operation in 1967 as a wholesale company specializing in
sweet potatoes. Today, based mainly on their original brand of sweet potato, “Beni-Tenshi”, they engage
in the sale of raw materials for baked sweet potato to retail stores as well as the direct sales of baked
sweet potato etc. In the domestic sweet potato market, demand for the varieties of sweet potatoes with
sweetness is rising as the variety improvement. In addition, demand for sweet potatoes is expanding
due to the introduction and utilization of baking potato machines in retail stores. Furthermore, the amount
of exports is also increasing in recent years due to increase in recognition of baked sweet potato in
Greater China and South Asia. Ibaraki Prefecture, where Potato Kaitsuka is located, ranks second in
terms of domestic sweet potato yields in 2018, and Potato Kaitsuka is in a position of high share of sweet
potato handled. Through the acquisition, we will strive to expand our sweet potato business by utilizing
both Potato Kaitsuka’s expertise and technologies for sweet potatoes and Calbee’s assets for potatoes
such as variety development and storage technologies.
3. Date of business combination
April 1, 2020
4. Legal form of business combination
Acquisition of stock and share acquisition rights
5. Name of company after business combination
No change
6. Ratio of voting rights
100%
7. Major reasons for acquisition
Acquisition paid in cash by Calbee, Inc.

(2) Purchase price and its breakdown
Purchase price of equity interest paid by cash: ¥13,800 million




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