Consolidated Financial Statements for the First Half of the Fiscal Year Ending March 31, 2020

Consolidated Financial Statements for the
First Half of the Fiscal Year
Ending March 31, 2020
April 1, 2019 to September 30, 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)
First Half Results for the Fiscal Year Ending March 31, 2020
Calbee, Inc. October 29, 2019
Stock exchange listings: Tokyo 1st section, code number 2229
URL: https://www.calbee.com Contact: Koichi Kikuchi
Senior Managing Director
Telephone: +81-3-5220-6222
Representative: Shuji Ito, President & CEO, Representative Director
Scheduled date for submission of the first half financial report: November 11, 2019
Scheduled date for distribution of dividends: --
Availability of supplementary explanatory material for the first half results: Available
Quarterly results presentation meeting: Yes (for institutional investors and analysts)


1) Consolidated results for the first six months (April 1, 2019 to September 30, 2019) of the fiscal year ending March 31,

---

(1) Consolidated Operating Results Millions of yen, rounded down
Six months ended Six months ended
September 30, 2018 September 30, 2019
% change % change
Net sales ............................................................ 121,067 1.9 125,246 3.5
Operating profit................................................... 11,740 13.6 13,258 12.9
Ordinary profit..................................................... 12,560 19.0 12,819 2.1
Profit attributable to owners of parent................. 9,628 36.7 8,820 (8.4)
Earnings per share (¥)........................................ 72.06 65.99
Earnings per share (diluted) (¥) .......................... 72.03 65.98
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.
2. Comprehensive income: Six months ended September 30, 2019: ¥7,481 million (-29.2%)
Six months ended September 30, 2018: ¥10,563 million (45.1%)

(2) Consolidated Financial Position Millions of yen, rounded down
As of March 31, 2019 As of September 30, 2019
Total assets ........................................................ 202,750 204,449
Net assets .......................................................... 160,490 161,903
Shareholders’ equity/total assets (%) ................. 75.9 75.9
Shareholders’ equity: As of September 30, 2019: ¥155,264 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 ............................................................ 258,000 3.8
Operating profit................................................... 27,000 0.1
Ordinary profit..................................................... 26,500 (3.4)
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: None




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 September 30, 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
Six months to September 30, Six months to September 30,
2018: 2019:
3. Average number of shares during the period 133,622,795 shares 133,663,156 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 September 30, 2019 and 266,915 of these shares as of March 31, 2019, and the average number of shares
excludes 262,328 treasury shares in the six months to September 30, 2019, and 281,416 treasury shares in the six months to
September 30, 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 briefing for institutional investors and analysts for October 29, 2019.
A video 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
Subsequent events..…………………………………………………….………………………………… 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 six-month period of the fiscal year ending March 31, 2020 (April 1, 2019 to
September 30, 2019) increased 3.5% to ¥125,246 million, mainly due to the expansion of overseas
businesses. In the overseas business, sales increased due to the business acquisition in the UK in
October 2018, in addition, sales grew in Greater China where we conducted proactive sales promotional
activities for Frugra, and in Indonesia where new potato chips and other products were launched. In the
domestic business in this fiscal year, when price hike and content standard revisions of some snack
products were implemented, the sales of domestic snack foods increased due to an increase in demand
for products not subject to price hike, despite sales of products subject to price hike declined.

Operating profit increased 12.9% to ¥13,258 million, and the operating margin was 10.6%, an
improvement of 0.9 percentage points. In the domestic business, despite rises in logistics and packaging
costs, costs of sales, which deteriorated to increased volume campaign of Potato Chips in the same period
of the previous fiscal year, improved. In the overseas business, mainly sales growth in the UK and the
liquidation of the consolidated subsidiary in Taiwan contributed to increased profit. Ordinary profit
increased 2.1% to ¥12,819 million including foreign exchange loss of ¥544 million. Profit attributable to
owners of parent decreased 8.4% to ¥8,820 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
H1 FY ended H1 FY ending Growth on
March 31, 2019 March 31, 2020 Growth in local
yen currency
Amount % Amount % basis
Domestic sales 102,586 84.7 103,121 82.3 ＋0.5% ＋0.5%
Overseas sales 18,480 15.3 22,124 17.7 ＋19.7% ＋23.3%
Total 121,067 100.0 125,246 100.0 ＋3.5% ＋4.0%

Results by business are as follows.
Millions of yen, rounded down
H1 FY ended H1 FY ending
Sales March 31, 2019 March 31, 2020
Amount Amount Growth (%)
1) Production and sale of snack and
119,627 124,566 ＋4.1
other foods business
Domestic production and sale of
101,146 102,442 ＋1.3
snack and other foods business
Domestic snack foods 88,192 89,229 ＋1.2
Domestic cereals 12,408 12,599 ＋1.5
Other domestic foods 546 613 ＋12.3
Overseas production and sale of
18,480 22,124 ＋19.7
snack and other foods business
Overseas snack foods 16,299 18,858 ＋15.7
Overseas cereals 2,181 3,265 ＋49.7
2) Other businesses 1,439 679 －52.8
Total 121,067 125,246 ＋3.5




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 snacks increased year on year. Potato Chips, despite the impact of price hike,
were strong, contributed to the increase in sales of potato-based snacks due to strong sales of
products not subject to price hike. In addition, sales of flour-based snacks increased due to growth
in sales of Kappa Ebisen and Sapporo Potato, etc.
.
Sales of domestic snack foods by product are as follows.
Millions of yen, rounded down
H1 FY ended H1 FY ending
Sales
March 31, 2019 March 31, 2020
Amount Amount Growth (%)
Potato-based snacks 64,604 64,904 ＋0.5
Potato Chips 39,967 40,375 ＋1.0
Jagarico 18,755 18,604 －0.8
Jagabee/ Jaga Pokkuru 5,881 5,924 ＋0.7
Flour-based snacks 10,259 10,795 ＋5.2
Kappa Ebisen 4,639 4,950 ＋6.7
Sapporo Potato, etc. 5,619 5,845 ＋4.0
Corn- and bean-based snacks 7,907 7,829 －1.0
Other snacks 5,420 5,700 ＋5.2
Domestic snack foods total 88,192 89,229 ＋1.2

- 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 expanded, despite declined sales of regular
items including Usu-Shio-Aji causing an effect of price hike in this period. Sales of Jagarico regular
items expanded, otherwise Tomorico and Edamarico, which were launched nationwide in the
same period of the previous fiscal year, declined. In the Jagabee/Jaga Pokkuru sales, sales of
Jaga Pokkuru expanded although Jagabee sales continued weak.
- Sales of flour-based snacks increased year on year. Both sales of Kappa Ebisen with strong
demand and Sapporo Potato that reflected the effects of collaborative products increased.
- 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 to an increase in sales of the individual portion
snacks miino.

・Domestic cereals:
Sales of domestic cereals increased year on year. Despite of decreased sales of the Frugra regular
items and other products, sales of Frugra Less Carbohydrates increased as well as the new bland
Granola+ (Granola Plus), which specializes in nutritional supplements launched in this period,
contributed to sales. As a result, domestic consumption was almost flat year on year. Demand from
retail stores in Greater China increased.




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
H1 FY ended H1 FY ending
Sales
March 31, 2019 March 31, 2020
Amount Amount Growth (%)
North America 5,178 4,884 －5.7
Greater China* 5,177 6,131 ＋18.4
United Kingdom 827 2,931 ＋254.4
Indonesia 1,855 2,435 ＋31.3
Other regions** 5,441 5,741 ＋5.5
Overseas production and sale of
18,480 22,124 ＋19.7
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 Harvest Snaps,
despite of an increase in sales of Harvest Snaps made using organic beans due to strength sales
promotional activities.
- In Greater China, sales increased year on year due to an increase in sales of cereals Frugra
through e-commerce.
- Sales in the UK increased significantly year on year supported by business acquisition of
Seabrook Crisps Limited (engaged in manufacture and sales of potato chips) in October 2018.
- Sales in Indonesia increased significantly year on year due to increased sales of the existing
potato chips Potabee and the contributions in sales of Japota, a new flat-type potato chips.
- Sales in the other regions increased year on year mainly due to sales expansion of a bean-based
snacks 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 September 30, 2019 were ¥204,449 million, an increase of ¥1,698 million. The primary
factors contributing to this outcome were increases in cash and deposits and securities.
Liabilities increased ¥285 million to ¥42,546 million due to increases in notes and accounts payable-trade.
Net assets increased ¥1,412 million to ¥161,903 million due to an increase in retained earnings. The
shareholders’ equity ratio was 75.9%, same as at the end of the previous fiscal year.

2. Overview of cash flows
Cash and cash equivalents as of September 30, 2019 were ¥43,579 million, ¥8,153 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 ¥25,154 million, an increase in cash
inflow of ¥12,870 million, primarily due to a decrease in trade receivables.

Cash flows from investing activities
Investing activities during the period resulted in a net cash outflow of ¥10,567 million, a decrease in cash
outflow of ¥4,032 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 ¥6,125 million, an increase in cash
outflow of ¥4,703 million, primarily due to a decrease in inflow from short-term loans borrowings.


(3) Consolidated forecasts
There are no changes to the consolidated full-year forecasts for the fiscal year ending March 31, 2020
issued on May 14, 2019.




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 September 30, 2019

Assets
Current assets
Cash and deposits 12,992 22,852
Notes and accounts receivable - trade 39,736 27,431
Securities 42,760 47,616
Inventories 11,309 13,472
Other 5,067 4,117
Allowance for doubtful accounts (8) (0)
Total current assets 111,858 115,491
Non-current assets
Property, plant and equipment
Buildings and structures, net 28,883 28,332
Machinery, equipment and vehicles, net 29,811 29,278
Land 11,391 11,347
Construction in progress 1,224 2,088
Other, net 1,240 1,169
Total property, plant and equipment 72,552 72,216
Intangible assets
Goodwill 5,688 4,892
Other 2,016 1,912
Total intangible assets 7,704 6,805
Investments and other assets
Investments and other assets, gross 10,693 9,995
Allowance for doubtful accounts (59) (60)
Total investments and other assets 10,634 9,935
Total non-current assets 90,891 88,957
Total assets 202,750 204,449




Page 9 of 15
 Millions of yen, rounded down
As of March 31, As of September 30,

---

Liabilities
Current liabilities
Notes and accounts payable - trade 8,987 11,541
Short-term borrowings 1,027 1,036
Income taxes payable 5,478 3,594
Provision for bonuses 4,004 3,608
Provision for bonuses for directors (and other officers) 67 118
Provision for share-based remuneration 35 －
Other 14,442 14,456
Total current liabilities 34,043 34,355
Non-current liabilities
Provision for retirement benefits for directors (and other
officers) 286 325
Provision for share-based remuneration for directors (and
other officers) 92 130
Retirement benefit liability 6,531 6,405
Asset retirement obligations 522 524
Other 783 804
Total non-current liabilities 8,216 8,190
Total liabilities 42,260 42,546
Net assets
Shareholders' equity
Share capital 12,044 12,046
Capital surplus 4,786 4,779
Retained earnings 137,453 139,845
Treasury shares (981) (933)
Total shareholders' equity 153,303 155,738
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 467 396
Foreign currency translation adjustment 278 (720)
Remeasurements of defined benefit plans (119) (149)
Total accumulated other comprehensive income 627 (473)
Share acquisition rights 3 －
Non-controlling interests 6,555 6,638
Total net assets 160,490 161,903
Total liabilities and net assets 202,750 204,449




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
September 30, 2018 September 30 2019
Net sales 121,067 125,246
Cost of sales 67,733 69,241
Gross profit 53,333 56,005
Selling, general and administrative expenses 41,592 42,746
Operating profit 11,740 13,258
Non-operating income
Interest income 62 69
Dividend income 20 21
Share of profit of entities accounted for using equity method 0 26
Foreign exchange gains 822 －
Other 129 202
Total non-operating income 1,035 319
Non-operating expenses
Interest expenses 35 62
Foreign exchange losses － 544
Depreciation 46 61
Loss on valuation of inventories 79 －
Other 54 89
Total non-operating expenses 216 758
Ordinary profit 12,560 12,819
Extraordinary income
Gain on sales of non-current assets 21 6
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 488 －
Other － 3
Total extraordinary income 2,922 182
Extraordinary losses
Loss on sales of non-current assets 3 0
Loss on retirement of non-current assets 106 105
Loss on store closings － 136
Impairment loss 813 －
Retirement benefits for directors 350 －
Loss on sales of shares of subsidiaries and associates 24 －
Other 2 1
Total extraordinary losses 1,301 243
Profit before income taxes 14,181 12,757
Income taxes - current 4,322 3,191
Income taxes - deferred 182 674
Total income taxes 4,505 3,866
Profit 9,675 8,891
Profit attributable to non-controlling interests 47 70
Profit attributable to owners of parent 9,628 8,820



Page 11 of 15
Consolidated statements of comprehensive income

Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
September 30, 2018 September 30, 2019
Profit 9,675 8,891
Other comprehensive income
Valuation difference on available-for-sale securities 32 (71)
Foreign currency translation adjustment 736 (1,307)
Remeasurements of defined benefit plans, net of tax 119 (30)
Total other comprehensive income 887 (1,409)
Comprehensive income 10,563 7,481
Comprehensive income attributable to
Owners of parent 10,350 7,719
Non-controlling interests 213 (237)




Page 12 of 15
(3) Consolidated statements of cash flows
Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
September 30, 2018 September 30, 2019
Cash flows from operating activities
Profit before income taxes 14,181 12,757
Depreciation 3,871 4,060
Impairment loss 813 －
Amortization of goodwill 283 331
Increase (decrease) in allowance for doubtful accounts (2) (6)
Increase (decrease) in provision for bonuses (421) (395)
Increase (decrease) in provision for bonuses for directors
(33) 53
(and other officers)
Increase (decrease) in provision for share-based
(2) 5
remuneration
Increase (decrease) in provision for share-based
－ 45
remuneration for directors
Increase (decrease) in retirement benefit liability (76) (205)
Decrease (increase) in retirement benefit asset 14 12
Increase (decrease) in provision for retirement benefits for
(154) 38
directors (and other officers)
Interest and dividend income (82) (91)
Interest expenses 35 62
Foreign exchange losses (gains) (737) 397
Subsidies income － (170)
Gain on liquidation of business (488) －
Share of loss (profit) of entities accounted for using equity
(0) (26)
method
Loss (gain) on sales of investment securities (2,387) (1)
Loss (gain) on sales of non-current assets (17) (6)
Loss on retirement of non-current assets 106 105
Decrease (increase) in trade receivables 2,401 11,973
Decrease (increase) in inventories (2,643) (2,306)
Increase (decrease) in trade payables 2,196 2,749
Increase (decrease) in accounts payable - other (1,377) (785)
Other, net 1,700 1,584
Subtotal 17,178 30,183
Interest and dividends received 60 89
Interest paid (36) (60)
Income taxes paid (4,918) (5,057)
Net cash provided by (used in) operating activities 12,283 25,154




Page 13 of 15
 Millions of yen, rounded down
April 1, 2018 to April 1, 2019 to
September 30, 2018 September 30, 2019
Cash flows from investing activities
Purchase of property, plant and equipment (6,017) (3,832)
Proceeds from sales of property, plant and equipment 31 16
Purchase of intangible assets (279) (305)
Proceeds from sales of intangible assets 0 －
Purchase of securities (16,832) (34,824)
Proceeds from redemption of securities 4,000 28,441
Purchase of investment securities (7) (8)
Proceeds from sales of investment securities 47 5
Loan advances (920) (700)
Collection of loans receivable 2,378 800
Payments into time deposits － (944)
Proceeds from withdrawal of time deposits 266 623
Payments of guarantee deposits (45) (54)
Proceeds from refund of guarantee deposits 38 45
Payments for sales of shares of subsidiaries resulting in
(823) －
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 393 (1)
Net cash provided by (used in) investing activities (14,600) (10,567)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings 4,241 38
Purchase of treasury shares － (0)
Proceeds from exercise of employee share options 16 3
Proceeds from share issuance to non-controlling
－ 323
shareholders
Dividends paid (5,616) (6,422)
Dividends paid to non-controlling interests (10) (11)
Repayments of lease obligations (53) (55)
Net cash provided by (used in) financing activities (1,421) (6,125)
Effect of exchange rate change on cash and cash equivalents 266 (308)
Net increase (decrease) in cash and cash equivalents (3,471) 8,153
Cash and cash equivalents at beginning of period 42,195 35,425
Cash and cash equivalents at end of period 38,723 43,579




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.

(Subsequent events)
Business combination resulting from acquisition
Calbee America Inc., Calbee’s subsidiary company in USA, concluded agreement for the sale and
purchase of the business of Warnock Food Products, Inc. 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 sale of snack
2. Reason for business combination
Warnock Food Products, Inc. founded started operation in 1986, is a US contracted savory snack
manufacturer that produces a wide variety of snacks including potato chips, tortilla chips and puff
snacks. Through the acquisition, we aim to expand Calbee’s product portfolio in the US 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
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 by cash by Calbee consolidated subsidiary Calbee America, Inc.




Page 15 of 15