キッコーマン（2801） – Kikkoman Corporation Flash Report for Fiscal 2022 3Q (IFRS)

February 4, 2022 Consolidated Financial Results Kikkoman Corporation Flash Report for Fiscal 2022 3Q (IFRS) (Consolidated) Nine-month Period ended December 31, 2021 Listed company name: Kikkoman Corporation Shares listed: Tokyo (1st Section) 2801 https://www.kikkoman.com Code No.: URL: Contact: E-mail: Representative: Shozaburo Nakano, President and Chief Operating Officer Kazuki Usui, General Manager, Corporate Communication Department ir@mail.kikkoman.co.jp Scheduled submission date of quarterly accounting report: February 14, 2022 Scheduled date for cash dividend payments: Supplementary Schedules for quarter: Results briefing for quarter: － Yes No Kikkoman Corporation Flash Report for Fiscal 2022 3Q 1. Business Performance for the Nine-month Period Ended December 31, 2021 (Amounts less than ¥1 million have been omitted in the following tables) (April 1, 2021 to December 31, 2021) 1) Business Performance Revenue Business profit Operating profit Amount Amount Amount Amount Y o Y (%) Y o Y (%) Y o Y (%) (Millions of yen) Profit before income taxes Y o Y (%) 384,860 17.944,26627.643,18423.7 46,51128.9326,527 －34,697－34,906－ 36,069－Profit for the periodattributable to owners of the parent Total comprehensive income for the period Amount Amount Y o Y (%)Y o Y (%)33,354 28.740,77792.925,921 －21,138－Basic earnings per share (yen) Diluted earnings per share (yen) 173.96135.03－－(Notes) 1. The Group started to apply IFRS in the fiscal year ended March 31, 2021. Results for the nine-month period ended December 31, 2020 are shown without reference to percentage changes from those for the same period of the previous fiscal year. 2. Business profit is profit after deducting Cost of sales and Selling, general and administrative expenses from Revenue. 2) Financial Position Total assets Total equity Total equity attributable to owners of the parent (Millions of yen) Ratio of equity attributable to owners of the parent to total assets Dec. 31, 2021 Mar. 31, 2021 471,001438,508342,726313,514336,816 308,130 71.5%70.3%1 Apr. 1, 2021 -Dec. 31, 2021 Apr. 1, 2020 -Dec. 31, 2020 Apr. 1, 2021 -Dec. 31, 2021 Apr. 1, 2020 -Dec. 31, 2020 Apr. 1, 2021 -Dec. 31, 2021 Apr. 1, 2020 -Dec. 31, 2020 Kikkoman Corporation Flash Report for Fiscal 2022 3Q Three-month Period ended Six-month period endedCash dividends per share (yen) Nine-month period endedFull year ended Total － － 21.00 22.00 － － 24.00 45.00 23.00 45.00 (Note) Revisions to recently announced forecasts of dividends: None 3. Forecasts of Business Performance for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022) Revenue Business profit Operating profit Amount Amount Amount Amount Y o Y (%) Y o Y (%) Y o Y (%) (Millions of yen) Profit before income taxes Y o Y (%) 493,800 12.449,70016.548,20015.7 51,30018.8 2. Cash Dividends Apr. 1, 2020 -Mar. 31, 2021 Apr. 1, 2021 -Mar. 31, 2022 Apr. 1, 2021 -Mar. 31, 2022 (Estimated) Apr. 1, 2021 –Mar. 31, 2022 Profit for the year attributable to owners of the parent Amount Y o Y (%)Basic earnings per share (yen) Apr. 1, 2021 –Mar. 31, 2022 36,400 16.8189.87(Note) Revisions to recently announced forecasts of business performance: None 2 Kikkoman Corporation Flash Report for Fiscal 2022 3Q [Notes] 1) Changes in important subsidiaries during the period (Changes in certain specific subsidiaries resulting in a revised scope of consolidation): None 2) Changes in accounting policy and changes in accounting estimates ① Changes in accounting policies required by IFRS: None ② Changes in accounting policy other than those in ① above: None ③ Changes in accounting estimates: None 3) Issued and outstanding shares (common stock) ① Shares issued and outstanding at end of period (including treasury stock) December 31, 2021 － 193,883,202 shares March 31, 2021 － 193,883,202 shares ② Treasury stock at end of period December 31, 2021 － 2,266,497 shares March 31, 2021 － 1,911,533 shares ③ Average shares outstanding during the period (cumulative from the beginning of the fiscal year) December 31, 2021 － 191,737,256 shares December 31, 2020 － 191,973,625 shares * This Flash Report is not included in the scope of an audit by certified public accountants or the audit corporations. * Explanation concerning the appropriate use of financial result forecasts and other special notes (Caution Regarding Forward-looking Statements) Forecasts of business performance and future developments noted in this report are based on assumptions from information available to management at the time of disclosure and deemed reasonable at the present time. The Company makes no promises or commitments regarding achievements of such forecasts and future developments. Actual results may differ significantly from forecasts. For details of business performance forecasts and guidelines for assumptions, please refer to the attachments to this report, Page 9, 1. Qualitative Information and Consolidated Financial Statements, 3) Explanation of forward-looking statements, including forecasts of consolidated business performance. (How to obtain business performance presentation materials) Kikkoman will publish supplementary schedules to the nine-month results on TD-net for viewing in Japan, and on its website. 3 Kikkoman Corporation Flash Report for Fiscal 2022 3Q Table of Contents of Attachments 1. Qualitative Information and Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5 1) Explanation of business performance ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5 2) Explanation of financial position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 9 3) Explanation of forward-looking statements, including forecasts of consolidated business performance ꞏꞏꞏꞏꞏꞏ 9 2. Condensed Quarterly Consolidated Financial Statements and Main Notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10 1) Condensed Quarterly Consolidated Statements of Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10 2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12 (Condensed Quarterly Consolidated Statements of Profit or Loss) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12 (Condensed Quarterly Consolidated Statements of Comprehensive Income) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 13 3) Condensed Quarterly Consolidated Statements of Changes in Equity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14 4) Notes on Condensed Quarterly Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16 (Notes Regarding Going Concern) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16 (Segment Information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16 4 Kikkoman Corporation Flash Report for Fiscal 2022 3Q 1. Qualitative Information and Consolidated Financial Statements 1) Explanation of business performance During the first nine months under review, the global economy remained severe due to the lasting impact of the COVID-19 pandemic, although there were signs of a recovery. In these circumstances, overall domestic sales of the Group climbed year on year in the Foods—Manufacturing and Sales business, with food products and liquor and wine remaining strong, although sales of soy sauce and beverages declined from their levels in the previous year. Overseas, sales increased year on year with strong performance in both the Foods—Manufacturing and Sales and the Foods—Wholesale businesses. As a result, consolidated results for the nine-month period in fiscal 2022 were as follows. Revenue Business Profit Operating Profit Profit before income taxes Profit for the period attributable to owners of the parent Exchange Rate (¥/US$) (¥/EUR) FY2021 3Q 4.1.2020 – 12.31.2020 FY2022 3Q 4.1.2021 – 12.31.2021 Increase /Decrease Translation difference (Millions of yen, %) Increase /Decrease except translation difference AmountYoYAmount % Amount% Amount YoY% 326,527 100.0 384,860100.058,332 117.915,210 43,122113.234,697 10.6 44,26611.59,568 127.634,906 10.7 43,18411.28,277 123.736,069 11.0 46,51112.110,441 128.91,834 1,645 1,640 7,733122.36,631119.08,801124.425,921 7.9 33,3548.77,432 128.71,220 6,212124.0－ 0.9 0.5 1.1 0.8 105.87 122.30 111.38 130.855.518.55 5 Kikkoman Corporation Flash Report for Fiscal 2022 3Q (Millions of yen, %) FY2021 3Q 4.1.2020 – 12.31.2020 FY2022 3Q 4.1.2021 – 12.31.2021 Increase /Decrease Translation difference Increase /Decrease except translation difference AmountYoY1,231101.1647106.2198101.2(16)98.97,045109.51,808111.65,313168.3(1,652)(20)－－43,122113.27,733122.3－ － － － 4,656 925 778 (575) 130 15,210 1,834 － 0.5 － － 0.3 － 1.9 － － － 0.9 Domestic Foods— Manufacturing and Sales Domestic Others Overseas Foods— Manufacturing and Sales Overseas Foods— Wholesale Adjustments Consolidated Total Revenue Business Profit Revenue Business Profit Revenue Business Profit Revenue Business Profit Revenue Business Profit Revenue Business Profit Amount 115,229 100.0 % Amount% Amount YoY% 116,461100.01,231101.110,531 9.1 11,1789.6647106.215,980 100.0 16,179100.0198101.21,466 9.2 1,4499.0(16)98.9(0.2) 74,076 100.0 85,778100.011,702115.815,562 21.0 18,29621.32,733117.67,776 5.4 13,8687.36,092178.3(22,071) 100.0 (24,299)100.0(2,227)(638) － (528)－110－－326,527 100.0 384,860100.058,332117.934,697 10.6 44,26611.59,568127.6Exchange Rate (¥/US$) (¥/EUR) 105.87 122.30 111.38130.855.518.55Performance in each reporting segment is outlined as follows. 【Domestic】 Revenue in Japan were as follows. Foods—Manufacturing and Sales 143,313 100.0 190,741100.047,428133.111,129 36,299125.3This business segment comprises manufacturing and sales in Japan of products from the Soy Sauce Division and the Food Products Division, which includes tsuyu (soy sauce soup base), tare (dipping and marinade sauces), and Del Monte seasonings, as well as the Beverages Division, which includes soy milk beverages and Del Monte beverages, and the Liquor and Wine Division, which includes mirin and wines. Revenue for each division were as follows. ■Soy Sauce Division Sales of the Itsudemo Shinsen (always fresh) series increased year on year, mainly due to the adoption of TV advertisement-focused marketing measures aimed at communicating products’ added value. However, this was more than offset by a decline from the year-ago level in sales of products in conventional plastic bottles such as Tokusen Marudaizu Shoyu. Consequently, overall sales in the home-use sector decreased year on year. Sales in the industrial- and foodservice-use sectors rose year on year, reflecting a recovery from a decline in demand during the previous year due to COVID-19. As a result, overall sales decreased year on year for the Soy Sauce Division. 6 Kikkoman Corporation Flash Report for Fiscal 2022 3Q ■Food Products Division Overall sales of tsuyu products remained at the year-ago level despite the strong performance of the Gumen straight-type tsuyu series and shirodashi. Sales of tare products rose year on year, reflecting solid sales of the mainstay Wagaya wa Yakinikuyasan series. The Uchi no Gohan series surpassed its sales in the previous year, aided by strong sales of the Niku Okazu no Moto, a new series released in February 2021. Sales rose year on year for Del Monte seasonings due to higher sales in the industrial- and foodservice-use sectors, which offset slow sales in the home-use sector. As a result, overall sales increased year on year for the Food Products Division. ■Beverages Division Demand for soy milk beverages has been expanding, reflecting increasing health awareness and an increase in the number of consumers who use soy milk not only as a beverage but also as a cooking ingredient. Overall sales rose year on year, reflecting higher sales of merchandises categorized as Food for Specified Health Use and unprocessed soy milk in particular. Sales of Del Monte beverages decreased year on year due to lackluster sales of tomato juice. As a result, overall sales decreased year on year for the Beverages Division. ■Liquor and Wine Division Sales of Hon Mirin increased year on year, reflecting higher sales of Nokojukusei Hon Mirin and high value-added products such as Komekoji Kodawari-jikomi Hon Mirin in the home-use sector, as well as an increase in sales for products in large containers in the industrial- and foodservice-use sectors. Sales of wine increased year on year. As a result, overall sales increased year on year for the Liquor and Wine Division. As a result of the above, the Foods—Manufacturing and Sales segment recorded higher revenue and higher profit, with revenue increasing 1.1% year on year, to ¥116,461 million, and business profit increasing 6.2% year on year, to ¥11,178 million. Others This segment includes production and sales of clinical diagnostic reagents, hygiene inspection agents, and chemical products such as hyaluronic acid, as well as real estate rental, logistics, back-office functions for the Kikkoman Group, and other businesses. Sales of clinical diagnostic reagents exceed the previous year mainly due to a recovery from a decline in demand. As a result, overall sales increased year on year for the Others segment. As a result of the above, the Others segment recorded higher revenue and lower profit, with revenue increasing 1.2% year on year, to ¥16,179 million, and business profit decreasing 1.1% year on year, to ¥1,449 million. 7 Kikkoman Corporation Flash Report for Fiscal 2022 3Q 【Overseas】 Revenue overseas were as follows. Foods—Manufacturing and Sales This business comprises overseas manufacturing and sales of products from the Soy Sauce Division, Del Monte Division, and the Other Foods Division, including health foods. Revenue for each division were as follows. ■Soy Sauce Division In the North American market, the division continue to enhance its lineup of soy sauce-based seasonings and other products, in addition to its mainstay soy sauce products, in the home-use sector. At the same time, the division has been leveraging the Kikkoman brand to expand its business. In the industrial- and foodservice-use sectors, we have expanded our business by responding carefully to the needs of our customers. As a result, sales increased year on year. In the European market, sales increased year on year, reflecting growth in sales in main markets such as Germany, Netherlands and Italy. Looking at the Asia and Oceania market, sales increased year on year in China, reflecting a recovery from the decline caused by COVID-19 in the previous year. Sales also increased in Indonesia and Thailand. Consequently, overall sales also rose year on year. As a result, overall sales for the Soy Sauce Division rose year on year. ■Del Monte Division This division manufactures and sells canned fruits, canned corn, tomato ketchup and other products in the Asia and Oceania region. Overall sales rose year on year driven by the growth in China. ■Other Foods Division This division manufactures and sells health foods, mainly in the North American region. Sales increased year on year for the Other Foods Division. As a result of the above, the Foods—Manufacturing and Sales segment recorded higher revenue and higher profit, with revenue increasing 15.8% year on year, to ¥85,778 million, and business profit increasing 17.6% year on year, to ¥18,296 million. Foods—Wholesale This segment procures and sells oriental foods in Japan and overseas. Sales increased year on year in North America, given a recovery in demand in the restaurant industry due to the easing of restrictions attributable to COVID-19. Revenue were higher than the year-ago levels in Europe, Asia and Oceania for the same reason. As a result, overall sales increased year on year for the Foods—Wholesale segment. As a result of the above, the Foods—Wholesale segment recorded higher revenue and higher profit, with revenue increasing 33.1% year on year, to ¥190,741 million, and business profit increasing 78.3% year on year, to ¥13,868 million. As a result of the aforementioned segment results, the Company reported consolidated revenue for the nine-month period ended in fiscal 2022 of ¥384,860 million increasing 17.9% year on year, business profit of ¥44,266 million increasing 27.6%, operating profit of ¥43,184 million increasing 23.7%, and profit for the period attributable to owners of the parent of ¥33,354 million increasing 28.7%. 8 Kikkoman Corporation Flash Report for Fiscal 2022 3Q 2) Explanation of financial position (Assets) Current assets as of December 31, 2021, were ¥216,036 million, up ¥23,689 million from March 31, 2021. This was mainly due to increases in trade and other receivables and inventories. Non-current assets were ¥254,965 million, up ¥8,802 million from March 31, 2021. This was largely attributable to increases in property, plant and equipment and other financial assets (non-current). As a result, total assets increased ¥32,492 million from March 31, 2021, to ¥471,001 million. Current liabilities as of December 31, 2021, were ¥74,702 million, up ¥2,006 million from March 31, 2021. This was mainly due to an increase in income tax payable. Non-current liabilities were ¥53,573 million, up ¥1,275 million from March 31, 2021. This was largely due to an increase in long-term lease liabilities. As a result, total liabilities increased ¥3,281 million from March 31, 2021, to ¥128,275 million. (Liabilities) (Equity) Equity as of December 31, 2021 was ¥342,726 million, up ¥29,211 million from March 31, 2021. This was largely attributable to an increase in retained earnings. As a result, the ratio of equity attributable to owners of the parent to total assets was 71.5% (70.3% on March 31, 2021). 3) Explanation of forward-looking statements, including forecasts of consolidated business performance There are no changes to the full year forecasts of business performance that were announced in the Flash Report published on November 5, 2021. There are no significant changes to business risks that might affect business performance from the disclosures in the latest securities report (submitted on June 22, 2021). 9 Kikkoman Corporation Flash Report for Fiscal 2022 3Q 2. Condensed Quarterly Consolidated Financial Statements and Main Notes 1) Condensed Quarterly Consolidated Statements of Financial Position Assets Current assets: Cash and cash equivalents Trade and other receivables Inventories Other financial assets Other current assets Total current assets Non-current assets: Property, plant and equipment Investment properties Right-of-use assets Goodwill Intangible assets Investments in associates accounted for using the equity method Other financial assetsEmployee defined benefit assets Deferred tax assets Other non-current assets Total non-current assets Total assets As of March 31, 2021 (Millions of yen) As of December 31, 2021 55,678 62,579 63,085 5,598 5,403 192,346 127,077 9,388 22,145 5,006 5,075 3,545 63,267 7,440 3,005 209 246,162 438,508 57,42273,38672,1633,128 9,935 216,036131,2939,30922,9925,0514,9223,78166,7177,7482,976171254,965471,001 10 Kikkoman Corporation Flash Report for Fiscal 2022 3Q Liabilities Current liabilities: Trade and other payables Short-term borrowings and current portion of long-term borrowings Short-term lease liabilities Income tax payable Other financial liabilities Other current liabilities Total current liabilities Non-current liabilities: Long-term borrowings Long-term lease liabilities Deferred tax liabilities Employee defined benefit liabilities Other financial liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity Equity: Share capital Capital surplus Retained earnings Treasury stock Other components of equity Total equity attributable to owners of the parentNon-controlling interests Total equity Total liabilities and equity (Millions of yen) As of December 31, 2021 As of March 31, 2021 50,600 3,950 4,967 4,210 445 8,522 72,696 13,400 19,346 8,529 5,047 4,067 1,906 52,297 124,993 11,599 13,695 267,073 (3,658) 19,420 308,130 5,384 313,514 438,508 51,2693,9894,5266,6711,3776,86774,70213,40020,7648,2925,1244,0351,95553,573128,27511,59913,696291,719(6,172)25,973336,8165,909342,726471,001 11 Kikkoman Corporation Flash Report for Fiscal 2022 3Q 2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income (Condensed Quarterly Consolidated Statements of Profit or Loss) (Millions of yen) Nine months endedDecember 31, 2021 Nine months ended December 31, 2020 326,527 209,826 116,701 82,003 Revenue Cost of sales Gross profit Selling, general and administrative expenses Business profit Other income Other expenses Operating profit Finance income Finance costs Share of profit of associates accounted for using the equity method Profit before income taxes Income taxes Profit for the period Profit for the period attributable to: Owners of the parent Non-controlling interests Profit for the period Earnings per share (yen) 34,697 3,813 3,604 34,906 3,538 2,563 188 36,069 9,765 26,304 25,921 382 26,304 135.03 384,860247,975136,88592,61944,2661,7972,87843,1845,7662,68524546,51112,77033,74133,35438633,741173.9612 Kikkoman Corporation Flash Report for Fiscal 2022 3Q (Condensed Quarterly Consolidated Statements of Comprehensive Income) (Millions of yen) Nine months ended December 31, 2020 Nine months endedDecember 31, 2021 Profit for the period Other comprehensive income (loss): Items that will not be reclassified to profit or lossNet change in fair value of financial assets measured at FVOCI, net of taxes Remeasurements of defined benefit plans Share of other comprehensive income (loss) of associates accounted for using the equity method Items that are or may be reclassified subsequently to profit or loss Foreign currency translation adjustments Cash flow hedges Other comprehensive income for the period, net of tax Total comprehensive income for the period Total comprehensive income for the period attributable to: Owners of the parent Non-controlling interests 26,304 (616) (26) 58 (4,538) (42) (5,165) 21,138 20,884 254 33,741(836)115207,73247,03640,77740,05172613 Kikkoman Corporation Flash Report for Fiscal 2022 3Q 3) Condensed Quarterly Consolidated Statements of Changes in Equity Nine months ended December 31, 2020 (Millions of yen)Equity attributable to owners of the parent Share capital Capital surplus Retained earningsTreasury stock Other components of equity Exchange differences on translation of foreign operationsCash flow hedges Balance at beginning of the period 11,599 13,695(3,641) (5,453) — —0Profit for the period Other comprehensive income (loss) Total comprehensive income (loss) for the period Purchase of treasury stock Disposal of treasury stock Dividends Transfer from other components of equity to retained earnings Transfer to non-financial assets Other increase (decrease) Total transactions with owners of the parent Balance at end of the period — 11,599 013,695 Equity attributable to owners of the parent Other components of equity Net change in fair value of financial assets measured at FVOCI (545) (545) (582) Balance at beginning of the period 15,411 Profit for the period Other comprehensive income (loss) Total comprehensive income (loss) for the period Purchase of treasury stock Disposal of treasury stock Dividends Transfer from other components of equity to retained earnings Transfer to non-financial assets Other increase (decrease) —(35)(35)3535—— (12) 0 (12) (3,654) 272,258 25,921 (5,037) 20,884 (12) 0 — 39 — 240,64625,92125,921(8,065)546(7,519)259,0499,958—(5,037)(5,037)———39—(546)(507)4,412 (8,065) (295)(8,361)Total transactions with owners of the parent Balance at end of the period (582) 14,283 (8,038) (8,226)285,103 5,351 290,454 Remeasurements of defined benefit plans Total Total Non-controlling interests Total equity(4,413)(4,413)—(9,867)5,285382(128)254107(188)0(42)(42)39 39(3) 277,54326,304(5,165)21,138(12)0—3910714 Kikkoman Corporation Flash Report for Fiscal 2022 3Q Nine months ended December 31, 2021 Equity attributable to owners of the parent Share capital Capital surplus Retained earningsTreasury stock Balance at beginning of the period 11,599 13,695(3,658) (Millions of yen)Other components of equity Exchange differences on translation of foreign operationsCash flow hedges Profit for the period Other comprehensive income (loss) Total comprehensive income (loss) for the period Purchase of treasury stock Disposal of treasury stock Dividends Transfer from other components of equity to retained earnings Transfer to non-financial assets Increase (decrease) in treasury stocks due to change in equity interests in associates accounted for using the equity method Other increase (decrease) Total transactions with owners of the parent Balance at end of the period — —0— 11,599 013,696(8,708)291,719Equity attributable to owners of the parent Other components of equity Net change in fair value of financial assets measured at FVOCI Remeasurements of defined benefit plans Total Total Non-controlling interests Total equityBalance at beginning of the period 17,088 19,420308,130 5,384313,514267,07333,35433,354(8,825)116—6,6966,696(116)(26)—————(142)25,973 (2,513) — 0 (0) (2,513) (6,172) 33,354 6,696 40,051 (2,513) 0 (8,825) — (26) (0) — (11,364) 336,816 2,3087,3927,392—9,700386339726(0)(201)5,9092344(26)(26)233,7417,03640,777(2,513)0—(26)(0)(0)(11,566)342,72615(201)(9,027)Profit for the period Other comprehensive income (loss) Total comprehensive income (loss) for the period (806) (806) —105105Purchase of treasury stock Disposal of treasury stock Dividends Transfer from other components of equity to retained earnings Transfer to non-financial assets Increase (decrease) in treasury stocks due to change in equity interests in associates accounted for using the equity method Other increase (decrease) Total transactions with owners of the parent Balance at end of the period (11) (105)(11) 16,271 (105)— Kikkoman Corporation Flash Report for Fiscal 2022 3Q 4) Notes on Condensed Quarterly Consolidated Financial Statements (Notes Regarding Going Concern) No applicable items. (Segment Information) (a) Overview of reportable segments The Group’s reportable segments are components of the Group for which separate financial information is available. The Group’s Board of Directors uses these operating segments periodically to make decisions on the allocation of management resources and to evaluate business performance. The Group does not aggregate the operation segments in determining the reportable segments. The Company, as a holding company, mainly formulates Group strategies and manages operating companies. Under this structure, Japanese companies are categorized into companies that primarily engage in the manufacturing and sale of foods and others. Overseas business is operated by the holding company’s overseas business divisions, and the operating companies are categorized into companies that engage in foods manufacturing and sales and companies that engage in wholesale of oriental food products. Accordingly, the Group consists of four reportable segments that are a matrix of domestic and overseas regions and types of business: “Domestic Foods—Manufacturing and Sales,” “Domestic Others,” “Overseas Foods—Manufacturing and Sales” and “Overseas Foods—Wholesale. The Domestic Foods—Manufacturing and Sales segment engages in the manufacturing and sale of soy sauce, food products, beverages, liquor and wine in Japan. The Domestic Others segment engages in the manufacturing and sale of pharmaceuticals and chemical products and in real estate rentals, logistics, back-office functions and other businesses in Japan. The Overseas Foods—Manufacturing and Sales segment engages in the manufacturing, sale and exporting of soy sauce, Del Monte products and health foods and in the export and sales of products for overseas market. The Overseas Foods—Wholesale segment purchases and sells oriental foods in domestic and overseas markets. (b) Information about reportable segments Segment profit (loss) represents business profit, the amount obtained by deducting cost of sales, selling, general and administrative expenses from revenue. Inter-segment revenue and transfers are determined based on prevailing market prices. 16 Kikkoman Corporation Flash Report for Fiscal 2022 3Q (c) Information about revenue and profit or loss by reportable segment is set out below: Domestic Foods— Manufacturing and Sales Domestic Others Nine months ended December 31, 2020 OverseasFoods— Manufacturingand Sales Overseas Foods— WholesaleTotal Revenue External revenue Inter-segment revenue Total Segment profit (loss) Other income Other expenses Finance income Finance costs Share of profit of associates accounted for using the equity method Profit before income taxes 113,062 2,166 115,229 10,531 — — — — — — 5,51810,46215,9801,466——————Adjustments Consolidated(Millions of yen) — (22,071) (22,071) (638) — — — — 326,527—326,52734,6973,8133,6043,5382,563— — 18836,069142,963349143,3137,776——————326,527 22,071 348,599 35,336 — — — — — — (Note) Adjustment of segment profit is mainly due to the difference in allocation of corporate expenses. Domestic Foods— Manufacturing and Sales Domestic Others Nine months ended December 31, 2021 OverseasFoods— Manufacturingand Sales Overseas Foods— WholesaleTotal Revenue External revenue Inter-segment revenue Total Segment profit (loss) Other income Other expenses Finance income Finance costs Share of profit of associates accounted for using the equity method Profit before income taxes 114,237 2,223 116,461 11,178 — — — — — — 5,70610,47216,1791,449——————Adjustments Consolidated(Millions of yen) — (24,299) (24,299) (528) — — — — 384,860－384,86044,2661,7972,8785,7662,685— — 24546,511190,573167190,74113,868——————384,860 24,299 409,160 44,794 — — — — — — 64,9839,09374,07615,562——————74,34311,43585,77818,296—————— (Note) Adjustment of segment profit is mainly due to the difference in allocation of corporate expenses. 17