カルビー（2229） – Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2022

Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2022 April 1, 2021 to December 31, 2021 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 16 Calbee, Inc. URL: https://www.calbee.co.jp/en/ SUMMARY OF FINANCIAL STATEMENTS (consolidated) Third Quarter Results for the Fiscal Year Ending March 31, 2022 Stock exchange listings: Tokyo 1st section, code number 2229 Contact: Koichi Kikuchi Senior Managing Director & CFO Telephone: +81-3-5220-6222 February 1, 2022 Representative: Shuji Ito, President & CEO, Representative Director Scheduled date for submission of the third quarter financial report: February 10, 2022 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, 2021 to December 31, 2021) of the fiscal year ending March 31, 2022 (1) Consolidated Operating Results Millions of yen, rounded down Nine months ended December 31, 2020 Nine months ended December 31, 2021 Net sales …………………………………………………… Operating profit …………………………………………… Ordinary profit …………………………………………….. Profit attributable to owners of parent …………….. Earnings per share (¥) …………………………………. Earnings per share (diluted) (¥) …………………….. 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, 2021: ¥15,818 million (8.7%) Nine months ended December 31, 2020: ¥14,555 million (0.5%) % change 4.7 (0.2) (1.7) (4.3) 201,203 21,841 21,401 14,048 105.11 － 185,470 20,885 21,570 14,701 110.23 － % change － (4.4) 0.8 4.7 3. As the Company applied the “Accounting Standard for Revenue Recognition” (Business Accounting Standards No. 29) from the beginning of the fiscal year ending March 2022, the percentage change in net sales from the same period of the previous fiscal year is not shown. Assuming that the same accounting standard as before was applied to sales for the third quarter of the fiscal year ending March 2022, the percentage of change from the same period of the previous fiscal year is 4.3%, excluding the impact of the application of this accounting standard. (2) Consolidated Financial Position Total assets ……………………………………………….. Net assets …………………………………………………. Shareholders’ equity/total assets (%) …………….. Shareholders’ equity: As of December 31, 2021: ¥175,355 million As of March 31, 2021: ¥175,369 million As of March 31, 2021 As of December 31, 2021 Millions of yen, rounded down 238,978 182,740 73.4 237,154 183,141 73.9 2) Dividends FY ended March 31, 2021 FY ending March 31, 2022 (forecast) Yen 0.00 50.00 50.00 Interim period per share ………………………………. Year-end dividend per share ………………………… Annual dividend per share ……………………………. Note: Changes from the most recently announced dividend forecast: None 3) Consolidated forecasts for the fiscal year ending March 31, 2022(April 1, 2021 to March 31, 2022) Net sales …………………………………………………… Operating profit …………………………………………… Ordinary profit …………………………………………….. Profit attributable to owners of parent …………….. Earnings per share (¥) …………………………………. Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year. 243,000 25,500 26,000 17,500 131.75 % change － (5.8) (5.5) (1.0) 0.00 52.00 52.00 Millions of yen 2. Changes from the most recently announced results forecast: Yes 3. As the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ No. 29) from the beginning of the fiscal year ending March 2022, the percentage change in net sales from the previous fiscal year is not shown. Assuming that the same accounting standard as before was applied to sales for the fiscal year ending March 2022, the percentage of change from the previous fiscal year is 3.5%, excluding the impact of the application of this standard. Page 2 of 16 (1) Transfers of important subsidiaries during the period (transfers of specified subsidiaries resulting in changes in the Notes 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: Yes 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) 1. Number of outstanding shares (including treasury shares) 2. Number of treasury shares 3. Average number of shares during the period As of March 31, 2021: 133,929,800 shares As of December 31, 2021: 133,929,800 shares 289,176 shares Nine months to December 31, 2020: 133,656,967 shares 2,758,326 shares Nine months to December 31, 2021: 133,374,659 shares Note: Regarding Calbee stock held in trust as treasury stock within shareholders’ equity, the number of treasury shares includes 263,265 of these shares as of December 31, 2021 and 288,265 of these shares as of March 31, 2021, and the average number of shares excludes 274,118 treasury shares in the nine months to December 31, 2021, and 271,921 treasury shares in the nine months to December 31, 2020. 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 9, 1. Operating results (3) Consolidated forecasts for the fiscal year ending March 31, 2022. 2. The earnings per share forecast for the fiscal year ending March 31, 2022 is calculated using 132,831,408 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 on February 1, 2022. An audio recording of the conference will be made available on our Japanese website after the conference. Page 3 of 16 Contents 1. Operating results ……………………………………………………………………………………….…… 5 5 (1) Summary of business performance………………………………………………………………………. 8 (2) Analysis of financial position………………………………………………………………………………. 9 (3) Consolidated forecasts…………………………………………………………………………………….. 2. Consolidated financial statements and key notes……………………………………………….…. 10 10 (1) Consolidated balance sheets……………………………………………………………………………… 12 (2) Consolidated statements of income and comprehensive income…………………………………….. 14 (3) Consolidated statements of cash flows………………………………………………………………….. 16 (4) Notes to consolidated financial statements……………………………………………………………… 16 Notes related to going concern assumption……………………………………………………………. 16 Notes on occurrence of significant changes to shareholders’ equity………………………………… Changes in accounting policy ……………………………………………………………………………. 16 Subsequent events……………………………………………………………………………………………….. 16 Page 4 of 16 1. Operating results (1) Summary of business performance (All comparisons are with the same period of the previous fiscal year, unless stated otherwise.) Effective from the beginning of the first quarter of the current fiscal year, the Group adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and changed the method to deduct a portion of selling expenses (rebates, etc.) from sales, which was previously recorded in selling, general and administrative expenses. Net sales (by business, by product, and by region) and operating margin are compared and analyzed year-on-year, excluding the impact of the adoption of accounting standards. For more information on this change, please refer to ““Changes in accounting policy” in “(4) Notes to Consolidated Financial Statements” . Net sales during the nine-month period of the current fiscal year totaled ¥185,470 million. Growth in overseas business led to an increase of 4.3% excluding the impact of the adoption of revenue recognition standards. In the domestic business, sales of Jagarico and products with new value such as bean-based snack Miino grew, but sales of Potato Chips declined due to the impact of smaller potato harvest. As a result, sales remained flat from the same period of previous fiscal year. In the overseas business, sales increased due to growth in sales of snacks in all regions. Operating profit decreased 4.4% to ¥20,885 million, due to a sharp rise in the prices of raw materials such as cooking oil. Operating margin was 11.3%, decrease 0.9 percentage points from the same period of previous fiscal year excluding the impact of the adoption of revenue recognition standards. Ordinary profit increased 0.8% to ¥21,570 million due to the recording of foreign exchange gains and other factors. Profit attributable to owners of parent increased 4.7% to ¥14,701 million due to the recognition of gain on forgiveness of debt (gain on forgiveness of payroll protection program loans in the U.S.). Results by business are as follows. Domestic production and sale of snack and other foods business Domestic snack foods Domestic cereals Domestic others Overseas production and sale of snack and other foods business Subtotal Deduction of rebates, etc. Production and sale of snack and other foods business Total Q3 FY ended March 31, 2021 Amount Millions of yen, rounded down Q3 FY ending March 31, 2022 Amount Growth (%) 161,038 132,028 21,621 7,388 40,164 201,203 － 201,203 162,317 134,869 18,896 8,551 47,506 209,823 -24,352 185,470 +0.8 +2.2 -12.6 +15.7 +18.3 +4.3 － － Page 5 of 16 Production and sale of snack and other foods business Production and sale of snacks and other foods increased driven by overseas business. Domestic production and sale of snack and other foods business ・Domestic snack foods Domestic snack foods increased in sales. Sales of domestic snack foods by products are as follows. Potato-based snacks Potato Chips Jagarico Jagabee/ Jaga Pokkuru Flour-based snacks Corn- and bean-based snacks Other snacks Domestic snack foods total Q3 FY ended March 31, 2021 Amount Millions of yen, rounded down Q3 FY ending March 31, 2022 Amount Growth (%) 96,776 65,385 25,585 5,804 15,933 13,242 6,076 132,028 97,617 64,066 27,013 6,537 16,183 14,135 6,932 134,869 +0.9 -2.0 +5.6 +12.6 +1.6 +6.7 +14.1 +2.2 ・ Sales of potato-based snacks increased, driven by sales of Jagarico. – Sales of Potato Chips decreased from the same period of the previous fiscal year due to restrained sales promotion activities and readjustment of product policies, affected by smaller potato harvest. – Sales of Jagarico increased due to growth in sales of stand-pouch-type products such as Jagarico Salad bits Omori (large-bag type) and the aggressive introduction of limited-time products. – As inbound and domestic tourism remained sluggish, Jagabee/ Jaga Pokkuru increased in sales due to store set up at product exhibitions and sales in supermarkets etc. ・ Sales of corn-and bean-based snacks increased due to favorable sales of Miino, a bean-based snack, stemming from promotional campaigns such as TV commercials. ・ Sales of other snacks increased due to Potato Deluxe sales area expansion. ・Domestic cereals: Domestic cereal sales were ¥18,896 million (decreased 12.6%), due to the transfer of export sales to Chinese overseas subsidiary and a decline from the absence of nesting demand in the previous year, despite firm sales of the renewed Frugra Less Carbohydrates. ・Domestic others: Domestic others sales amounted to ¥8,551 million (increased 15.7%) due to strong sales in the sweet potato business, both sales in wholesale and company-owned shops. Page 6 of 16 Overseas production and sale of snack and other foods business Overseas production and sale of snack and other foods business increased in sales. Sales of overseas production and sale of snack and other foods business by region are as follows. Q3 FY ended March 31, 2021 Q3 FY ending March 31, 2022 Amount Amount Growth (%) North America Greater China* United Kingdom Indonesia Other regions** Overseas production and sale of snack and other foods business total 10,854 11,761 4,860 2,977 9,711 40,164 11,592 14,863 5,973 4,201 10,875 47,506 * Greater China: China and Hong Kong. ** Other regions: South Korea, Thailand, Singapore and Australia Millions of yen, rounded down Growth on local currency basis(%) +1.5 +14.7 +9.1 +30.3 +4.7 +9.2 +6.8 +26.4 +22.9 +41.1 +12.0 +18.3 ・ In North America, sales increased due to firm sales of bean-based snacks Harvest Snaps by the expansion of delivery of small bags to dollar store channels and other factors. ・ In Greater China, sales increased due to growth of both snack products and cereals. In snack products, sales of Honey Butter Chip and Jagabee were strong for both e-commerce and retail stores. In cereals, sales in retail stores expanded. ・ In the United Kingdom, sales increased due to strong sales of potato chips and Loaded Fries, which was launched in the second half of the previous fiscal year. ・ In Indonesia, sales increased due to growth in new flavor of Japota potato chips and Krisbee, a flour-based snack, as well as contributions in the new product Guribee. Page 7 of 16 (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, 2021 decreased by ¥1,824 million to ¥237,154 million, due to the redemption of securities in order to acquire property, plant and equipment, repay long-term borrowings and acquire treasury shares. The main reason for the increase in property, plant and equipment was the expansion of existing domestic businesses, including the acquisition of additional Kataage Potato manufacturing line. Liabilities decreased by ¥2,225 million to ¥54,013 million. This was mainly due to a decline in long-term borrowings as a result of switching the borrowings of Potato Kaitsuka Co., Ltd. (hereafter, “Potato Kaitsuka”) to internal loan. Net assets increased by ¥401 million to ¥183,141 million. This was mainly due to an increase in retained earnings resulting from the posting of profit attributable to owners of parent, despite the acquisition of treasury shares with the aim of further the distribution of profits to shareholders and improving capital efficiency. From those stated above, the shareholders’ equity ratio was 73.9%, up 0.5 percentage points. 2. Overview of cash flows Cash and cash equivalents as of December 31, 2021 were ¥29,649 million, decreased by ¥17,633 million. Cash flows from operating activities Operating activities resulted in net cash outflow of ¥4,106 million, a decrease of ¥7,495 million cash inflow. This was mainly due to a decrease in trade receivables attributable to the favorable sales performance in December 2021 compared to the same period of the previous fiscal year, and foreign exchange gains and losses turning into gains, which comes from market value evaluation of foreign exchange contracts. Cash flows from investing activities Investing activities resulted in a net cash outflow of ¥2,250 million, a decrease of ¥12,258 million. This was mainly due to the purchase of shares of subsidiaries resulting in change in scope of consolidation in the same period of the previous fiscal year caused by the acquisition of shares of Potato Kaitsuka. Cash flows from financing activities Financing activities resulted in a net cash outflow of ¥11,888 million, an increase of ¥9,375 million. This was mainly due to an increase in expenditures for the acquisition of treasury shares and the switch of long-term borrowings of Potato Kaitsuka to internal loan. Information Regarding Capital Resources and Shareholders’ equity Liquidity • Developments in Demand for Funds Calbee Group’s capital needs include the payment of raw materials, labor, expenses and selling, personnel and logistics expenses for the manufacture of products, which are used to fund our operations. Funds used in investing activities consist mainly of capital investment and M&A. Funds used in financing activities consist mainly of capital requirements related to dividends paid by the parent company. With regard to the cash outflow plan for investing activities and financing activities, based on the five-year medium-term business plan (from FY March 2020 to FY March 2024), we plan to allocate ¥180,000 million, which is the sum of cash flow from operating activities of ¥160,000 million and cash on hand of ¥20,000 million, which we expect to acquire in the five years from FY March 2020 to FY March 2024. We plan to allocate ¥60,000 million to capital investment to growth/raise productivity in existing businesses, and to strengthen overseas production structure, ¥80,000 million to investments to acquire foundation for growth based Page 8 of 16 on a long-term perspective, including new businesses, promotion of digital transformation, and M&A etc., and ¥40,000 million to shareholder returns. The status of cash outlays as of the end of third quarter of the current fiscal year under review is as follows. FY ended March 31, 2020 FY ended March 31, 2021 Q3 FY ending March 31, 2022 Millions of yen, rounded down medium-term business plan Progress (%) 8,751 7,558 6,425 22,735 11,205 13,330 6,693 31,229 10,012 537 6,691 17,241 60,000 80,000 40,000 180,000 49.9% 26.8% 49.5% 39.6% Capital investment Growth investment Shareholder Returns Total • Fund-raising progress In principle, Calbee Group’s financing methods are funded by cash flows from operating activities, and temporary shortages of funds are funded based on short-term borrowings from financial institutions. We and our domestic consolidated subsidiaries have introduced a cash management system (CMS) to centrally manage funds within the Group, thereby centrally managing surplus funds, securing liquidity for funds, and improving fund efficiency. In addition, we have entered into overdraft agreements with several financial institutions with the aim of supplementing the liquidity of its funds further, and we recognizes that it has sufficient liquidity to fund its business operations. (3) Consolidated forecasts The consolidated forecasts for the fiscal year ending March 31, 2022 have been revised as follows, in accordance with the results for the third quarter of the fiscal year and latest performance trends. Net sales are expected to exceed the previous forecast due to strong performance of overseas business continued, despite the expected temporary decrease of sales volume in domestic business due to the impact of smaller potato harvest and revisions of prices and contents. Operating profit, ordinary profit and profit attributable to owners of parent are expected to be lower than the previous forecast due to the inability to absorb rising costs caused by soaring prices of raw materials such as cooking oil, through revisions of prices and contents and cost reductions. The main exchange rates used as a basis for this forecast is 1USD = ¥112, 1RMB = ¥17.48, 1GBP = ¥154 and 1IDR = ¥0.0079. Revised forecast (A) Previous forecast (B) Change (A – B) Change (%) Millions of yen, rounded down 243,000 25,500 26,000 17,500 240,000 28,000 27,500 18,000 +3,000 -2,500 -1,500 -500 +1.3 -8.9 -5.5 -2.8 Net sales Operating profit Ordinary profit Profit attributable to owners of parent Page 9 of 16 2. Consolidated financial statements and key notes (1) Consolidated balance sheets Millions of yen, rounded down As of March 31, 2021 As of December 31, 2021 Assets Current assets Cash and deposits Notes and accounts receivable – trade Securities Inventories Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Machinery, equipment and vehicles, net Land Construction in progress Other, net Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investments and other assets, gross Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 34,572 30,449 38,899 14,694 4,868 (5) 123,477 29,964 31,619 11,554 2,489 1,651 77,280 24,518 1,978 26,497 11,724 (0) 11,723 115,501 238,978 22,962 46,754 24,999 17,896 6,427 (28) 119,012 33,262 32,032 11,879 2,385 1,809 81,369 23,473 2,324 25,798 10,975 (1) 10,974 118,142 237,154 Page 10 of 16 Liabilities Current liabilities Notes and accounts payable – trade Short-term borrowings Current portion of long-term borrowings Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Provision for share-based remuneration Other Total current liabilities Non-current liabilities Long-term borrowings Provision for retirement benefits for directors (and other Provision for share-based remuneration for directors (and officers) other officers) Retirement benefit liability Asset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets Millions of yen, rounded down As of March 31, 2021 As of December 31, 2021 10,160 2,616 298 5,153 4,916 116 88 19,235 42,585 3,166 358 265 7,846 749 1,267 13,652 56,238 12,046 4,777 159,551 (1,045) 175,329 300 562 (822) 39 7,371 182,740 238,978 10,745 9,174 － 1,830 3,235 97 － 18,227 43,311 － 336 309 7,850 747 1,457 10,701 54,013 12,046 3,232 166,933 (7,707) 174,504 394 1,390 (934) 850 7,786 183,141 237,154 Page 11 of 16 (2) Consolidated statements of income and comprehensive income Consolidated statements of income Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Share of profit of entities accounted for using equity method Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Share of loss of entities accounted for using equity method Foreign exchange losses Depreciation Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Gain on forgiveness of debts Subsidies income Gain on liquidation of subsidiaries and associates Subsidy income related to COVID-19 Other Total extraordinary income Extraordinary losses Loss on sale of non-current assets Loss on retirement of non-current assets Loss on valuation of investment securities Loss on sale of investment securities Loss on business restructuring Loss on COVID-19 Loss on store closings Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent Millions of yen, rounded down April 1, 2020 to December 31, 2020 201,203 111,815 89,388 67,546 21,841 70 40 33 － 188 332 73 143 392 105 57 772 21,401 13 42 － 58 174 225 － 514 57 339 － 0 － 243 15 61 718 21,197 5,133 1,533 6,666 14,530 482 14,048 April 1, 2021 to December 31, 2021 185,470 120,670 64,800 43,914 20,885 62 38 11 648 139 900 77 － － 74 63 215 21,570 5 69 389 42 － － 4 511 23 235 59 8 34 － － 2 364 21,716 5,483 1,386 6,869 14,847 145 14,701 Page 12 of 16 Consolidated statements of comprehensive income Profit Other comprehensive income Valuation difference on available-for-sale Foreign currency translation adjustment Remeasurements of defined benefit plans, net of securities tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Owners of parent Non-controlling interests April 1, 2020 to December 31, 2020 Millions of yen, rounded down April 1, 2021 to December 31, 2021 14,530 119 (60) (34) 24 14,555 13,952 602 14,847 94 988 (111) 971 15,818 15,512 305 Page 13 of 16 (3) Consolidated statements of cash flows Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in provision for share-based remuneration Increase (decrease) in provision for share-based remuneration for directors Increase (decrease) in retirement benefit liability Decrease (increase) in retirement benefit asset Increase (decrease) in provision for retirement benefits for directors (and other officers) Interest and dividend income Interest expenses Foreign exchange losses (gains) Loss (gain) on liquidation of subsidiaries and associates Subsidies income Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of investment securities Loss (gain) on valuation of investment securities Loss (gain) on sale of non-current assets Loss on retirement of non-current assets Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accounts payable – other Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Millions of yen, rounded down April 1, 2020 to December 31, 2020 April 1, 2021 to December 31, 2021 21,197 6,735 1,306 (cid:4666)7) (cid:4666)1,264) 13 (4) 69 4 (cid:4666)33) 52 (110) 73 689 (174) (58) 110 (42) － 43 339 (cid:4666)559) (cid:4666)913) (cid:4666)900) 114 (74) (cid:4666)12,868) (cid:4666)2,541) 11,155 (7,807) 3,388 21,716 6,783 1,358 22 (cid:4666)1,685) (cid:4666)18) (1) 43 (cid:4666)90) (cid:4666)176) (cid:4666)21) (cid:4666)101) 77 － (42) (cid:4666)11) (cid:4666)60) 59 18 235 (cid:4666)1,096) (cid:4666)16,046) (cid:4666)3,027) 328 (cid:4666)1,960) (cid:4666)1,642) 4,661 89 (cid:4666)69) (cid:4666)8,789) (cid:4666)4,106) Page 14 of 16 Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Purchase of securities Proceeds from redemption of securities Purchase of investment securities Proceeds from sale of investment securities Loan advances Collection of loans receivable Payments into time deposits Proceeds from withdrawal of time deposits Payments of guarantee deposits Proceeds from refund of guarantee deposits Purchase of shares of subsidiaries resulting in change in scope of consolidation Proceeds from subsidy income Other, net Cash flows from financing activities Net increase (decrease) in short-term borrowings Repayments of long-term borrowings Purchase of treasury shares Proceeds from share issuance to non-controlling shareholders Dividends paid Dividends paid to non-controlling interests Repayments of lease obligations Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Millions of yen, rounded down April 1, 2020 to December 31, 2020 April 1, 2021 to December 31, 2021 (8,305) 17 (439) (23,998) 31,182 (12) 68 (930) 760 (774) 1,124 (80) 31 (13,208) 58 (2) 4,508 (179) (191) 139 (6,692) (12) (83) － (2,512) 140 (13,493) 55,742 42,249 (cid:4666)9,833) 13 (cid:4666)716) (cid:4666)22,998) 30,900 (cid:4666)279) 218 (cid:4666)100) 180 (cid:4666)705) 703 (cid:4666)44) 380 － 27 4 6,500 (cid:4666)3,465) (6,749) 461 (cid:4666)6,691) (cid:4666)14) (cid:4666)47) (cid:4666)1,882) (cid:4666)11,888) 613 (cid:4666)17,633) 47,282 29,649 Net cash provided by (used in) investing activities (14,509) (cid:4666)2,250) Page 15 of 16 (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. (Changes in accounting policy) The company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020, hereinafter referred to as the “Accounting Standard for Revenue Recognition”) and other standards from the beginning of the first quarter of the fiscal year ending March 31, 2022 and adopted the policy of recognizing as revenue the amount expected to be received upon exchange of goods or services when it transfers control of the promised goods or services to be customer. As a result, rebates and other items were previously recorded as selling, general and administrative expenses when the amounts were finalized, but the Company has changed to a method of estimating the amount of the variable consideration and reducing it from sales at the time of sales. For the application of the Accounting Standard for Revenue Recognition, etc., the company has followed transitional treatment prescribed in the proviso of Article 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of retrospectively applying the new accounting policy prior to the beginning of the first quarter of the current fiscal year has been adjusted to retained earnings at the beginning of the first quarter of the current fiscal year. As a result, net sales for the nine months decreased by ¥24,352 million and selling, general and administrative expenses decreased by the same amount. In addition, the balance of retained earnings at the beginning of the current fiscal year decreased by ¥623 million. (Subsequent events) No applicable items. Page 16 of 16