Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2020

Consolidated Financial Statements for the
Third Quarter of the Fiscal Year
Ending March 31, 2020
April 1, 2019 to December 31, 2019




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 depending 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.




Page 1 of 15
 SUMMARY OF FINANCIAL STATEMENTS (consolidated)
Third Quarter Results for the Fiscal Year Ending March 31, 2020
Calbee, Inc. February 5, 2020
Stock exchange listings: Tokyo 1st section, code number 2229
URL: https://www.calbee.co.jp/en/ Contact: Koichi Kikuchi
Senior Managing Director
Telephone: +81-3-5220-6222
Representative: Shuji Ito, President & CEO, Representative Director
Scheduled date for submission of the third quarter financial report: February 10, 2020
Scheduled date for distribution of dividends: --
Availability of supplementary explanatory material for the third quarter results: Available
Quarterly results presentation meeting: Yes (conference call for institutional investors and analysts)


1) Consolidated results for the first nine months (April 1, 2019 to December 31, 2019) of the fiscal year ending March
31, 2020
(1) Consolidated Operating Results Millions of yen, rounded down
Nine months ended Nine months ended
December 31, 2018 December 31, 2019
% change % change
Net sales ............................................................ 187,022 0.2 192,104 2.7
Operating profit................................................... 20,441 6.5 21,879 7.0
Ordinary profit..................................................... 20,840 7.3 21,762 4.4
Profit attributable to owners of parent................. 15,019 14.9 14,680 (2.3)
Earnings per share (¥)........................................ 112.40 109.83
Earnings per share (diluted) (¥) .......................... 112.35 109.82
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.
2. Comprehensive income: Nine months ended December 31, 2019: ¥14,487 million (-4.3%)
Nine months ended December 31, 2018: ¥15,146 million (9.0%)

(2) Consolidated Financial Position Millions of yen, rounded down
As of March 31, 2019 As of December 31, 2019
Total assets ........................................................ 202,750 213,653
Net assets .......................................................... 160,490 169,156
Shareholders’ equity/total assets (%) ................. 75.9 75.8
Shareholders’ equity: As of December 31, 2019: ¥161,992 million
As of March 31, 2019: ¥153,931 million



2) Dividends
Yen
FY ended FY ending
March 31, 2019 March 31, 2020 (forecast)
Interim period per share ..................................... 0.00 0.00
Year-end dividend per share .............................. 48.00 50.00
Annual dividend per share.................................. 48.00 50.00
Note: Changes from the most recently announced dividend forecast: None



3) Consolidated forecasts for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)
Millions of yen
% change
Net sales ............................................................ 255,000 2.6
Operating profit................................................... 27,500 2.0
Ordinary profit..................................................... 27,200 (0.8)
Profit attributable to owners of parent................. 17,500 (9.9)
Earnings per share (¥)........................................ 130.91
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.
2. Changes from the most recently announced results forecast: Yes




Page 2 of 15
 Notes
(1) Transfers of important subsidiaries during the period (transfers of specified subsidiaries resulting in changes in the
scope of consolidation): None

(2) Use of special accounting procedures: None

(3) 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

(4) Number of outstanding shares (common stock)

As of March 31, 2019: As of December 31, 2019:
1. Number of outstanding shares 133,921,800 shares 133,929,800 shares
(including treasury shares)
2. Number of treasury shares 267,747 shares 254,472 shares
Nine months to December Nine months to December
31, 2018: 31, 2019:
3. Average number of shares during the period 133,632,228 shares 133,667,228 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 December 31, 2019 and 266,915 of these shares as of March 31, 2019, and the average number of shares
excludes 259,405 treasury shares in the nine months to December 31, 2019, and 277,940 treasury shares in the nine months to
December 31, 2018.


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 details of forecasts, please see Page 8, 1. Operating results (3) Consolidated
forecasts for the fiscal year ending March 31, 2020.
2. The earnings per share forecast for the fiscal year ending March 31, 2020 is calculated using 133,675,328 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 February
5, 2020. An audio recording of the conference will be made available on our Japanese website after the conference.




Page 3 of 15
Contents

1. Operating results …………………………………………………………………………………………… 5
(1) Summary of business performance………………………………………………………………………. 5
(2) Analysis of financial position………………………………………………………………………………. 8
(3) Consolidated forecasts…………………………………………………………………………………….. 8
2. Consolidated financial statements and key notes ……………………………….…………………. 9
(1) Consolidated balance sheets……………………………………………………………………………… 9
(2) Consolidated statements of income and comprehensive income…………………………………….. 11
(3) Consolidated statements of cash flows………………………………………………………………….. 13
(4) Notes to consolidated financial statements……………………………………………………………… 15
Notes related to going concern assumption……………………………………………………………. 15
Notes on occurrence of significant changes to shareholders’ equity………………………………… 15
Business combinations and the other related matters……………………………….………………… 15




Page 4 of 15
1. Operating results

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

Net sales during the nine-month period of the fiscal year ending March 31, 2020 (April 1, 2019 to
December 31, 2019) increased 2.7% to ¥192,104 million, mainly due to the expansion of overseas
businesses. In the overseas business, the business acquisition in the UK in October 2018 contributed to
the increase in sale, in addition, sales of Frugra through e-commerce in Greater China and Harvest
Snaps in Australia contributed to the sales expansion. Furthermore, we acquired U.S. confectionery
company Warnock Food Products, Inc. (hereafter“Warnock”) in October 2019 to expand our product
portfolios in North America. In the domestic business, when price hike and content standard revisions of
some snack products were implemented against the background of increased costs of logistics and
other costs, the sales of domestic snack foods increased due to an increase in demand for products not
subject to price hike, despite sales of some Potato Chips subject to price hike declined.

Operating profit increased 7.0% to ¥21,879 million, and the operating margin was 11.4%, an
improvement of 0.5 percentage points. In the domestic business, despite rises in logistics and packaging
costs, the sales of domestic snack foods increased and cost of sales, which deteriorated to increased
volume campaign of Potato Chips in the previous fiscal year improved. In the overseas business, mainly
sales growth as well as cost improvements in the UK and sales growth in Australia contributed to increased
profit. Ordinary profit increased 4.4% to ¥21,762 million including foreign exchange loss of ¥280 million.
Profit attributable to owners of parent decreased 2.3% to ¥14,680 million, due to an absence of ¥2,378
million gain on sales of shares of consolidated subsidiaries and associates under extraordinary income in
the same period of the previous fiscal year.

Millions of yen, rounded down
Q3 FY ended Q3 FY ending Growth on
March 31, 2019 March 31, 2020 Growth in local
yen currency
Amount % Amount % basis
Domestic sales 157,290 84.1 158,712 82.6 ＋0.9% ＋0.9%
Overseas sales 29,731 15.9 33,392 17.4 ＋12.3% ＋15.4%
Total 187,022 100.0 192,104 100.0 ＋2.7% ＋3.2%

Results by business are as follows.
Millions of yen, rounded down
Q3 FY ended Q3 FY ending
Sales March 31, 2019 March 31, 2020
Amount Amount Growth (%)
1) Production and sale of snack and
184,810 190,662 ＋3.2
other foods business
Domestic production and sale of
155,079 157,270 ＋1.4
snack and other foods business
Domestic snack foods 135,757 137,598 ＋1.4
Domestic cereals 18,322 18,614 ＋1.6
Other domestic foods 998 1,056 ＋5.8
Overseas production and sale of
29,731 33,392 ＋12.3
snack and other foods business
Overseas snack foods 25,734 28,309 ＋10.0
Overseas cereals 3,997 5,082 ＋27.2
2) Other businesses 2,211 1,441 －34.8
Total 187,022 192,104 ＋2.7

Page 5 of 15
 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 some Potato Chips subject
to price hike declined in this fiscal year, increased sales of Potato Chips not subject to price hike
and demand for flour-based snacks contributed to sales of domestic snacks.
.
Sales of domestic snack foods by product are as follows.
Millions of yen, rounded down
Q3 FY ended Q3 FY ending
Sales
March 31, 2019 March 31, 2020
Amount Amount Growth (%)
Potato-based snacks 99,790 100,752 ＋1.0
Potato Chips 63,063 63,666 ＋1.0
Jagarico 28,044 28,112 ＋0.2
Jagabee/ Jaga Pokkuru 8,681 8,973 ＋3.4
Flour-based snacks 15,632 16,311 ＋4.3
Kappa Ebisen 7,295 7,577 ＋3.9
Sapporo Potato, etc. 8,337 8,733 ＋4.7
Corn- and bean-based snacks 12,155 11,931 －1.8
Other snacks 8,178 8,603 ＋5.2
Domestic snack foods total 135,757 137,598 ＋1.4

- 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 period. 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. In the Jagabee/Jaga
Pokkuru sales, sales of Jaga Pokkuru expanded due to an increase in production capacity which
enabled us to supply adequately to meet demand, although Jagabee sales declined.
- Sales of flour-based snacks increased year on year due to continuous strong demand for Kappa
Ebisen and Sapporo Potato.
- 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 an increase in sales for retail store in
Greater China, while domestic consumption was flat. Look at in detail of the sales for domestic
consumption, despite decreased sales of the Frugra limited-time products, sales of Frugra Less
Carbohydrates expanded and the new bland Granola+ (Granola Plus), which specializes in
nutritional supplements, contributed.




Page 6 of 15
 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
Q3 FY ended Q3 FY ending
Sales
March 31, 2019 March 31, 2020
Amount Amount Growth (%)
North America 7,323 7,110 －2.9
Greater China* 8,755 9,671 ＋10.5
United Kingdom 2,513 4,501 ＋79.1
Indonesia 2,868 3,393 ＋18.3
Other regions** 8,271 8,715 ＋5.4
Overseas production and sale of
29,731 33,392 ＋12.3
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 decreased year on year due to sluggish demand for a bean-based snacks
Harvest Snaps. Warnock, the acquired company, was newly included in the scope of consolidation
from November 2019.
- In Greater China, sales increased year on year due to an increase in sales of Frugra through e-
commerce.
- In the UK, sales increased significantly year on year supported by business acquisition of
Seabrook Crisps Limited (engaged in manufacture and sales of potato chips) 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 significantly year on
year due to the transfer of all shares of consolidated subsidiary engaged in the promotional tools
business in September 2018.




Page 7 of 15
(2) Analysis of financial position
(All comparisons are with the end of the previous fiscal year, unless stated otherwise.)

1. Overview of assets, liabilities and net assets
Total assets as of December 31, 2019 were ¥213,653 million, an increase of ¥10,902 million. The
primary factors contributing to this outcome were increases in goodwill resulting from the acquisition of
Warnock.
Liabilities increased ¥2,236 million to ¥44,496 million mainly due to increases in short-term borrowings
payable. The increase in short-term borrowings was due to bank holidays at the end of the month.
Net assets increased ¥8,666 million to ¥169,156 million due to an increase in retained earnings.
The shareholders’ equity ratio decreased 0.1 percentage points from the end of the previous fiscal year
to 75.8%.

2. Overview of cash flows
Cash and cash equivalents as of December 31, 2019 were ¥44,187 million, ¥8,762 million higher than
at the end of the previous fiscal year.

Cash flows from operating activities
Operating activities during the period resulted in net cash inflow of ¥13,812 million, an increase in cash
inflow of ¥2,431 million, due to an increase in profit before income taxes excluding gain on sales of
investment securities primarily through sales growth.

Cash flows from investing activities
Investing activities during the period resulted in a net cash outflow of ¥3,872 million, a decrease in cash
outflow of ¥15,297 million, primarily due to an increase in inflow from the redemption of securities.

Cash flows from financing activities
Financing activities during the period resulted in a net cash outflow of ¥1,183 million, a decrease in cash
outflow of ¥2,210 million, primarily due to an increase in inflow from short-term loans borrowings.


(3) Consolidated forecasts
Taking into account our business performance during the nine-month period of the fiscal year and latest
performance, the consolidated forecasts for the fiscal year ending March 31, 2020 have been revised as
follows.
The full year forecast for net sales are expected to underperform the previous announced forecast due
to delayed progress in overseas business, mainly due to sluggish sales of existing products in North
America. Operating profit and ordinary profit are expected to outperform the previous announced forecast
due to an improvement in raw material costs for cereals and other factors in the domestic business, despite
the impact of the aforementioned shortfall in sales forecasts in North America.
The exchange rate used as a basis for this announcement is US$1 = ¥109, which is unchanged from
the previous announced forecast.

Millions of yen, rounded down

Profit attributable
Net sales Operating profit Ordinary profit to owners of
parent
Revised forecast (A) 255,000 27,500 27,200 17,500
Previous forecast (B) 258,000 27,000 26,500 17,500
Change (A - B) -3,000 +500 +700 0
Change (%) -1.2 +1.9 +2.6 -



Page 8 of 15
2. Consolidated financial statements and key notes

(1) Consolidated balance sheets
Millions of yen, rounded down


As of March 31, 2019 As of December 31, 2019
Assets
Current assets
Cash and deposits 12,992 16,102
Notes and accounts receivable - trade 39,736 42,631
Securities 42,760 38,675
Inventories 11,309 12,145
Other 5,067 7,285
Allowance for doubtful accounts (8) (0)
Total current assets 111,858 116,839
Non-current assets
Property, plant and equipment
Buildings and structures, net 28,883 28,255
Machinery, equipment and vehicles, net 29,811 29,575
Land 11,391 11,367
Construction in progress 1,224 2,724
Other, net 1,240 1,133
Total property, plant and equipment 72,552 73,057
Intangible assets
Goodwill 5,688 11,567
Other 2,016 2,120
Total intangible assets 7,704 13,688
Investments and other assets
Investments and other assets, gross 10,693 10,070
Allowance for doubtful accounts (59) (2)
Total investments and other assets 10,634 10,068
Total non-current assets 90,891 96,813
Total assets 202,750 213,653




Page 9 of 15
 Millions of yen, rounded down


As of March 31, 2019 As of December 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade 8,987 9,776
Short-term borrowings 1,027 6,078
Income taxes payable 5,478 1,901
Provision for bonuses 4,004 3,337
Provision for bonuses for directors (and other

---

officers)
Provision for share-based remuneration 35 －
Other 14,442 14,950
Total current liabilities 34,043 36,170
Non-current liabilities
Provision for retirement benefits for directors

---

(and other officers)
Provision for share-based remuneration for

---

directors (and other officers)
Retirement benefit liability 6,531 6,506
Asset retirement obligations 522 525
Other 783 797
Total non-current liabilities 8,216 8,326
Total liabilities 42,260 44,496
Net assets
Shareholders' equity
Share capital 12,044 12,046
Capital surplus 4,786 4,779
Retained earnings 137,453 145,706
Treasury shares (981) (933)
Total shareholders' equity 153,303 161,598
Accumulated other comprehensive income
Valuation difference on available-for-sale

---

securities
Foreign currency translation adjustment 278 30
Remeasurements of defined benefit plans (119) (165)
Total accumulated other comprehensive

---

income
Share acquisition rights 3 －
Non-controlling interests 6,555 7,164
Total net assets 160,490 169,156
Total liabilities and net assets 202,750 213,653




Page 10 of 15
(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
December 31, 2018 December 31 2019
Net sales 187,022 192,104
Cost of sales 103,449 105,420
Gross profit 83,572 86,683
Selling, general and administrative expenses 63,130 64,804
Operating profit 20,441 21,879
Non-operating income
Interest income 108 86
Dividend income 42 40
Share of profit of entities accounted for using equity method 3 3
Foreign exchange gains 292 －
Other 249 330
Total non-operating income 697 460
Non-operating expenses
Interest expenses 50 69
Share of loss of entities accounted for using equity method － 3
Foreign exchange losses － 280
Depreciation 71 91
Loss on valuation of inventories 64 －
Other 111 132
Total non-operating expenses 298 577
Ordinary profit 20,840 21,762
Extraordinary income
Gain on sales of non-current assets 25 8
Gain on sales of investment securities 33 1
Subsidies income － 170
Gain on sales of shares of subsidiaries and associates 2,378 －
Gain on liquidation of business 468 －
Other － 3
Total extraordinary income 2,905 183
Extraordinary losses
Loss on sales of non-current assets 10 21
Loss on retirement of non-current assets 131 170
Loss on store closings － 136
Impairment loss 813 －
Retirement benefits for directors 350 －
Loss on sales of shares of subsidiaries and associates 24 －
Other 222 1
Total extraordinary losses 1,554 329
Profit before income taxes 22,191 21,616
Income taxes - current 6,800 5,994
Income taxes - deferred 386 834
Total income taxes 7,187 6,828
Profit 15,004 14,787
Profit (loss) attributable to non-controlling interests (14) 106
Profit attributable to owners of parent 15,019 14,680


Page 11 of 15
Consolidated statements of comprehensive income

Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
December 31, 2018 December 31, 2019
Profit 15,004 14,787
Other comprehensive income
Valuation difference on available-for-sale securities (99) 60
Foreign currency translation adjustment 77 (314)
Remeasurements of defined benefit plans, net of tax 162 (45)
Total other comprehensive income 141 (300)
Comprehensive income 15,146 14,487
Comprehensive income attributable to
Owners of parent 15,114 14,447
Non-controlling interests 31 40




Page 12 of 15
(3) Consolidated statements of cash flows
Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
December 31, 2018 December 31, 2019
Cash flows from operating activities
Profit before income taxes 22,191 21,616
Depreciation 5,936 6,194
Impairment loss 813 －
Amortization of goodwill 520 506
Increase (decrease) in allowance for doubtful accounts (16) (64)
Increase (decrease) in provision for bonuses (1,008) (667)
Increase (decrease) in provision for bonuses for directors
(41) 59
(and other officers)
Increase (decrease) in provision for share-based
(2) 5
remuneration
Increase (decrease) in provision for share-based
－ 67
remuneration for directors
Increase (decrease) in retirement benefit liability 106 (163)
Decrease (increase) in retirement benefit asset 23 12
Increase (decrease) in provision for retirement benefits for
(145) 58
directors (and other officers)
Interest and dividend income (150) (126)
Interest expenses 50 69
Foreign exchange losses (gains) (10) 144
Subsidies income － (170)
Gain on liquidation of business (468) －
Share of loss (profit) of entities accounted for using equity
(3) 0
method
Loss (gain) on sales of investment securities (2,387) (1)
Loss (gain) on sales of non-current assets (14) 13
Loss on retirement of non-current assets 131 170
Decrease (increase) in trade receivables (1,978) (2,344)
Decrease (increase) in inventories (1,668) (530)
Increase (decrease) in trade payables 593 563
Increase (decrease) in accounts payable - other (542) (667)
Other, net (1,364) (1,635)
Subtotal 20,563 23,107
Interest and dividends received 125 123
Interest paid (44) (70)
Income taxes paid (9,264) (9,349)
Net cash provided by (used in) operating activities 11,380 13,812




Page 13 of 15
 Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
December 31, 2018 December 31, 2019
Cash flows from investing activities
Purchase of property, plant and equipment (7,404) (6,062)
Proceeds from sales of property, plant and equipment 225 101
Purchase of intangible assets (463) (471)
Proceeds from sales of intangible assets 0 －
Purchase of securities (23,825) (42,818)
Proceeds from redemption of securities 14,827 52,344
Purchase of investment securities (42) (12)
Proceeds from sales of investment securities 47 5
Loan advances (980) (700)
Collection of loans receivable 2,378 800
Payments into time deposits － (1,626)
Proceeds from withdrawal of time deposits 264 1,749
Payments of guarantee deposits (69) (91)
Proceeds from refund of guarantee deposits 124 44
Purchase of shares of subsidiaries resulting in change in
(7,351) (7,305)
scope of consolidation
Payments for sales of shares of subsidiaries resulting in
(460) －
change in scope of consolidation
Proceeds from sales of shares of subsidiaries resulting in
3,169 －
change in scope of consolidation
Proceeds from subsidy income － 170
Other, net 389 (1)
Net cash provided by (used in) investing activities (19,170) (3,872)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings 2,296 5,038
Purchase of treasury shares － (0)
Proceeds from exercise of employee share options 17 3
Proceeds from share issuance to non-controlling
－ 323
shareholders
Dividends paid (5,618) (6,424)
Dividends paid to non-controlling interests (10) (11)
Repayments of lease obligations (79) (112)
Net cash provided by (used in) financing activities (3,393) (1,183)
Effect of exchange rate change on cash and cash equivalents 145 6
Net increase (decrease) in cash and cash equivalents (11,037) 8,762
Cash and cash equivalents at beginning of period 42,195 35,425
Cash and cash equivalents at end of period 31,157 44,187




Page 14 of 15
(4) Notes to consolidated financial statements

(Notes related to going concern assumption)
No applicable items.

(Notes on occurrence of significant changes to shareholders’ equity)
No applicable items.

(Business combinations and other related matters)
Business combination resulting from acquisition
Calbee America, Inc., Calbee's subsidiary company in U.S., concluded agreement for the sale and
purchase of the shares of Warnock Food Products, Inc. (hereafter "Warnock") with major
shareholders and completed the acquisition of 80% of the shares on October 25, 2019.

(1) Overview of the transaction
1. Name and business description of the acquired company
Name of acquired company: Warnock Food Products, Inc.
Description of business: Production and Sales of Snack foods
2. Reason for business combination
Warnock, founded in 1986, is a U.S. contracted savory snack manufacturer that produces a wide
variety of snacks including potato chips, tortilla chips and puff snacks. Through the acquisition of
Warnock, we aim to expand Calbee's product portfolio in the U.S. snack market, the world largest
market, leveraging its product development capability and distribution. With a close collaboration
between Warnock and Calbee North America, LLC, we will broaden our presence and aim to
expand Calbee group business in the North America.
3. Date of business combination
October 25, 2019 (Date of acquisition of stock)
4. Legal form of business combination
Acquisition of stock
5. Name of company after business combination
No change
6. Ratio of voting rights
80%
7. Major reasons for acquisition
Acquisition paid in cash by Calbee consolidated subsidiary Calbee America, Inc.

(2) Period for inclusion of business results of acquired company in quarterly consolidated financial
statements
November 1, 2019 to December 31, 2019

(3) Purchase price and its breakdown
Purchase price of equity interest paid by cash: ¥7,404 million

(4) Details and amount of major purchase-related expenses
Advisory fees, etc.: ¥157 million

(5) Goodwill arising from the acquisition, reason for its recognition, and amortization method and
period
1. Goodwill arising from the acquisition
¥6,414 million
The amount of goodwill is calculated provisionally.
2. Reason for the recognition of goodwill
Expectation of future excess earning power due to business development.
3. Amortization method and period
Goodwill is being amortized by the straight-line method over 15 years.
Page 15 of 15