S Foods : Summary of Consolidated Financial Results for the First Quarter

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Three Months Ended May 31, 2022

[Japanese GAAP]

Company name: S Foods Inc.	July 13, 2022
Stock exchange listing: Tokyo
Code number: 2292
URL: https://www.sfoods.co.jp
Representative: Shinnosuke Murakami	President and Representative Director
Contact: Yosuke Yuasa	Director Supervising Administration Group

Phone: [phone]

Scheduled date of filing quarterly securities report: July 14, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended May 31, 2022 (March 01, 2022 to May 31, 2022)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
May 31, 2022	95,530		16.7	4,786	29.7	5,219	37.7	3,343	30.7
May 31, 2021	81,876		5.6	3,690	94.9	3,791	132.5	2,558	117.4

(Note) Comprehensive income:	Three months ended May 31, 2022:
	Three months ended May 31, 2021:

¥	4,100 million	[	19.5%]
¥	3,431 million	[	93.2%]

	Basic earnings	Diluted earnings per
	per share	share
Three months ended	Yen	Yen
May 31, 2022	105.76	-
May 31, 2021	80.95	-

(2) Consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

As of

Million yen

Million yen

%

May 31, 2022

198,769

109,075

51.4

February 28, 2022

181,518

106,157

54.7

(Reference) Equity: As of

May 31, 2022:

¥

102,133 million

As of

February 28, 2022:

¥

99,256 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended February 28, 2022

-

35.00

-

35.00

70.00

Fiscal year ending February 28, 2023

-

Fiscal year ending February 28, 2023

39.00

-

39.00

78.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023(March 01, 2022 to February 28, 2023)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit		Profit attributable	Basic earnings per
					to owners of parent	share
			Million yen		%	Million yen	%	Million yen			%	Million yen	%	Yen
Full year			375,000		4.5	14,800	(15.1)	15,000		(16.7)	10,000	(16.3)	316.31
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the three months ended May 31, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):		No
New	-	(Company name:											)
Exclusion:	-	(Company name:											)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

May 31, 2022:	32,267,721	shares
February 28, 2022:	32,267,721	shares
2) Total number of treasury shares at the end of the period:
May 31, 2022:	652,801	shares
February 28, 2022:	652,801	shares

3) Average number of shares during the period:
Three months ended May 31, 2022:	31,614,920	shares
Three months ended May 31, 2021:	31,608,919	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of February 28,2022	As of May 31,2022
Assets
	Current assets
		Cash and deposits	41,859	43,629
		Notes and accounts receivable - trade	32,149	38,366
		Merchandise and finished goods	25,207	31,543
		Work in process	1,799	1,986
		Raw materials and supplies	3,985	4,152
		Other	6,321	7,254
		Allowance for doubtful accounts	(38)	(46)
		Total current assets	111,285	126,885
	Non-current assets
		Property, plant and equipment
		Buildings and structures	57,186	57,746
		Accumulated depreciation	(27,798)	(28,419)
		Buildings and structures, net	29,387	29,326
		Land	15,299	14,965
		Other	36,576	39,800
		Accumulated depreciation	(25,584)	(26,243)
		Other, net	10,991	13,556
		Accumulated impairment	(3,515)	(3,651)
		Total property, plant and equipment	52,163	54,197
		Intangible assets
		Goodwill	257	242
		Other	481	457
		Total intangible assets	739	699
		Investments and other assets
		Investment securities	13,887	13,455
		Retirement benefit asset	151	157
		Other	3,494	3,572
		Allowance for doubtful accounts	(202)	(200)
		Total investments and other assets	17,331	16,985
		Total non-current assets	70,233	71,883
	Total assets	181,518	198,769

				(Million yen)
			As of February 28,2022	As of May 31,2022
Liabilities
	Current liabilities
		Notes and accounts payable - trade	22,475	33,264
		Short-term borrowings	5,533	9,038
		Income taxes payable	1,770	1,762
		Provision for bonuses	1,054	1,431
		Other	10,880	12,126
		Total current liabilities	41,714	57,624
	Non-current liabilities
		Bonds payable	450	400
		Long-term borrowings	28,779	27,486
		Provision for retirement benefits for directors (and	174	124
		other officers)
		Retirement benefit liability	1,886	1,906
		Other	2,357	2,151
		Total non-current liabilities	33,647	32,069
	Total liabilities	75,361	89,693
Net assets
	Shareholders' equity
		Share capital	4,298	4,298
		Capital surplus	18,739	18,739
		Retained earnings	72,631	74,868
		Treasury shares	(410)	(410)
		Total shareholders' equity	95,258	97,495
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	2,956	2,674
		securities
		Deferred gains or losses on hedges	13	70
		Foreign currency translation adjustment	989	1,858
		Remeasurements of defined benefit plans	38	35
		Total accumulated other comprehensive income	3,998	4,638
	Non-controlling interests	6,900	6,941
	Total net assets	106,157	109,075
Total liabilities and net assets	181,518	198,769

Quarterly Consolidated Statements of Income and Comprehensive Income
	Quarterly Consolidated Statements of Income (For the three months)
			(Million yen)
		For the three months	For the three months
		ended May 31,2021	ended May 31,2022
Net sales	81,876	95,530
Cost of sales	68,843	81,402
Gross profit	13,032	14,127
Selling, general and administrative expenses	9,341	9,341
Operating profit	3,690	4,786
Non-operating income
	Interest income	4	28
	Dividend income	7	6
	Rental income from buildings	33	51
	Share of profit of entities accounted for using equity	0	4
	method
	Foreign exchange gains	25	285
	Other	130	158
	Total non-operating income	201	534
Non-operating expenses
	Interest expenses	66	65
	Rent cost	11	11
	Other	22	24
	Total non-operating expenses	101	101
Ordinary profit	3,791	5,219
Extraordinary income
	Gain on sale of non-current assets	0	1
	Gain on sale of investment securities	0	-
	Subsidy income	150	115
	Compensation income	1	-
	Total extraordinary income	152	116
Extraordinary losses
	Loss on disposal of non-current assets	6	28
	Impairment losses	0	-
	Loss on store closings	0	0
	Loss on temporary store closings	98	30
	Loss on tax purpose reduction entry of non-current	-	50
	assets
	Total extraordinary losses	106	110
Profit before income taxes	3,837	5,225
Income taxes	1,189	1,761
Profit	2,648	3,463
Profit attributable to non-controlling interests	89	120
Profit attributable to owners of parent	2,558	3,343