雪国まいたけ（1375） – [Delayed] Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Under IFRS)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. February 3, 2022 Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Under IFRS) Company name: YUKIGUNI MAITAKE CO., LTD. Listing: Securities code: URL: Representative: Inquiries: Telephone: Scheduled date to file quarterly securities report: Preparation of supplementary material on quarterly financial results: Yes Holding of quarterly financial results briefing: Tokyo Stock Exchange 1375 https://www.maitake.co.jp/ Iwao Ashikaga, President and CEO, Representative Director Takenori Sakurai, Executive Officer (Chief Financial Officer) +81-25-778-0162 None February 4, 2022 1. Consolidated Financial Results for the First Nine Months Ended December 31, 2021 (from April 1, 2021 to December 31, 2021) (1) Consolidated Operating Results (Cumulative) (Percentages indicate year-on-year changes.) (Yen amounts are rounded down to millions, unless otherwise noted.) Total income Operating profit Profit before tax Profit Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2021 December 31, 2020 36,458 39,712 -8.2 2.5 5,451 7,098 -23.2 13.5 5,139 6,503 -21.0 10.3 3,387 4,259 -20.5 12.7 Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Nine months ended Millions of yen % Millions of yen % December 31, 2021 December 31, 2020 3,386 -20.6 4,265 12.8 3,384 -20.8 4,271 13.1 Yen 84.85 107.04 Note: Effective July 30, 2020, YUKIGUNI MAITAKE CO., LTD. (hereinafter “the Company”) split the shares of its common stock on a 100-for-1 basis. Basic earnings per share and diluted earnings per share have been restated, as appropriate, on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. (Reference) Adjusted operating profit Adjusted EBITDA Adjusted profit Adjusted basic earnings per share Nine months ended Millions of yen % Millions of yen % Millions of yen % December 31, 2021 December 31, 2020 5,451 -26.0 7,365 15.0 6,928 -21.6 8,838 14.7 3,488 -25.8 4,703 19.0 (2) Consolidated Financial Position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets As of December 31, 2021 March 31, 2021 Millions of yen Millions of yen Millions of yen 10,938 9,230 10,940 9,233 37,776 35,644 Yen 84.83 106.94 Yen 87.40 118.03 % 29.0 25.9 2. Cash Dividends Fiscal year ended March 31, 2021 Fiscal year ending March 31, 2022 Fiscal year ending March 31, 2022 (Forecast) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Annual dividends per share Yen ‒ ‒ Yen 14.00 14.00 Yen ‒ ‒ Yen 28.00 28.00 Yen 42.00 42.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (from April 1, 2021 to March 31, 2022) Total income Operating profit Profit before tax Profit Millions of yen 46,911 Full year Note: Revisions from financial results forecasts announced most recently: Yes 5,018 -35.8 4,565 -35.9 -8.7 % Millions of yen % Millions of yen % Millions of yen (Percentages indicate year-on-year changes.) Basic earnings per share Profit attributable to owners of parent 2,949 -37.8 % Millions of yen 2,949 % -37.8 Yen 73.89 As for the consolidated financial forecast for the fiscal year ending March 31, 2022, please refer to the “Notice Concerning Revision of Full-year Earnings Forecast” released today (February 3, 2022). Adjusted operating profit Adjusted EBITDA Adjusted profit Adjusted basic earnings per share Full year Millions of yen 5,018 % Millions of yen 6,982 -38.0 % Millions of yen 3,112 -30.7 % -40.4 Yen 77.99 (Reference) * Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (3) Number of issued shares (ordinary shares) (i) Total number of issued shares at the end of the period (including treasury shares) 39,910,700 shares 39,910,700 shares ‒ shares ‒ shares (ii) Number of treasury shares at the end of the period As of December 31, 2021 As of March 31, 2021 As of December 31, 2021 As of March 31, 2021 year) (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal Nine months ended December 31, 2021 39,910,700 shares Nine months ended December 31, 2020 39,850,000 shares Note: Effective July 30, 2020, the Company split the shares of its common stock on a 100-for-1 basis. The number of shares issued has been restated, as appropriate, to reflect a 100-for-1 stock split effective on July 30, 2020. * Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters (Caution concerning forward-looking statements) The forward-looking statements, such as forecasts of financial results, included in this document are based on information available to the management as of the date of the document and certain assumptions that the management considers reasonable. The Company does not promise that forecasts will be achieved. Actual results may differ significantly due to a range of factors. (Other special comments) (1) The Company and its consolidated subsidiaries (together, “the Group”) apply the International Financial Reporting Standards (hereinafter “IFRS”). (2) Adjusted operating profit = Operating profit + Management fee + Listing-related expenses (3) Adjusted EBITDA = Adjusted operating profit + Depreciation + Amortization (4) Adjusted profit for the period or year = Profit for the period or year + Management fee + Listing-related expenses + Refinancing-related gains/losses + Tax adjustments (5) In (2) and (4), “Listing-related expenses” are temporary costs including listing preparation advisory costs, costs related to building an organizational structure for listing, costs related to the introduction of IFRS and timely disclosure system for listing, real estate registration costs associated with a merger, etc. “Refinancing-related gains / losses” are advisory expenses that were temporarily incurred in connection with refinancing carried out after the Company was closed to the public. These expenses are offset by temporary gains that were incurred due to the decline in contract interest rates associated with the refinancing and the increase in interest expense during the remaining contract period that occurs in conjunction with the refinancing. (6) Adjusted basic earnings per share = Adjusted profit for the period or year/Average number of shares during the period or year (7) Adjusted operating profit, Adjusted EBITDA, Adjusted profit for the period or year and Adjusted basic earnings per share are not indicators defined by IFRS, but the Group assumes these indicators are useful for investors to evaluate the Group’s performance. These financial indicators exclude some expenses and non-recurring gains / losses that are not expected to occur after listing. Adjusted Operating Profit, Adjusted EBITDA, Adjusted profit for the period or year and Adjusted basic earnings per share should not be considered as indicators to replace the other indicators shown in accordance with IFRS because they do not include some of the items that affect the profit for the period, so they are subject to significant restrictions as means of analysis. Adjusted Operating Profit, Adjusted EBITDA, Adjusted profit for the period or year and Adjusted basic earnings per share disclosed by the Group may be less useful in comparison with the same or similar indicators of other competitors because they are calculated according to a different method from those of such other companies. (How to obtain supplementary financial results briefing materials and financial results briefing details) Supplementary financial results briefing materials are posted on our website on February 3, 2022. Accompanying Materials – Contents Ⅰ. Qualitative Information for the First Nine-Month Period of the Fiscal Year Ended March 31, 2022……………2 1. Analysis of Operating Results………………………………………………………………………………2 2. Analysis of Financial Position………………………………………………………………………………4 3. Analysis of Cash Flows ………………………………………………………………………………………5 4. Explanations about Forward-Looking Information Including Forecast of Consolidated Financial Results…5 Ⅱ. Summarized Quarterly Consolidated Financial Statements and Significant Notes ………………………6 1. Summarized Quarterly Consolidated Statements of Financial Position………………………………………6 2. Summarized Quarterly Consolidated Statements of Income and Comprehensive Income …………………8 3. Summarized Quarterly Consolidated Statement of Changes in Equity……………………………………10 4. Summarized Quarterly Consolidated Statements of Cash Flows……………………………………………11 5. Notes to Summarized Consolidated Financial Statements…………………………………………………12 (Going Concern Assumptions) ……………………………………………………………………………12 (Segment Information) ……………………………………………………………………………………12 (Earnings per Share) ………………………………………………………………………………………13 (Significant Subsequent Events) …………………………………………………………………………13 – 1 – Ⅰ. Qualitative Information for the First Nine-Month Period of the Fiscal Year Ending March 31, 2022 1. Analysis of Operating Results During the first three quarters of the current fiscal year (April 1, 2021 to December 31, 2021), the Japanese economy experienced a cooling of consumer sentiment due to the spread of the COVID-19 infection. Although there were hopes that the economy would pick up with the progress of vaccination, the current situation remains very severe due to the stagnation of economic activities caused by the rapid spread of mutated strains of the disease. As for the business environment surrounding our company, the prolonged effects of the COVID-19 infection have caused people to refrain from going out and to increase frugality, and the food service industry continues to be sluggish. In addition, due to the relatively mild weather in early autumn, the peak demand season for mushrooms, consumption of mushrooms as a whole from autumn onward has been slow, and the domestic mushroom market as a whole has been sluggish. In this environment, the Group announced its “Medium-Term Business Plan for FYE March 31, 2022 to FYE March 31, 2026” on November 4, 2021, with the aim of appropriately responding to changes in the business environment, creating demand in the domestic market, and continuing to expand and grow globally as a comprehensive premium mushroom manufacturer. [Basic policies of the Medium-term Business Plan] We will work to achieve our goals by developing our business under the following three basic policies, focusing on “create further demand in the domestic mushroom market and evolve into a comprehensive manufacturer of premium mushrooms with global operations”. A. Domestic mushroom market: New value creation We see the regional and age gaps in maitake consumption as a new sales opportunity, and will work to raise the level of domestic consumption by proactively disseminating information and improving the convenience of cooking. We will strengthen our mushroom business, which is a global standard and for which demand is expected to grow further, and move forward to a new stage as a comprehensive manufacturer of premium mushrooms. B. Technology development: Cost reduction through innovative production technology We will improve profitability by evolving into a highly efficient factory that utilizes the latest FA technology. We will strive to maximize energy efficiency and reduce environmental impact. C. Global expansion: Build an in-house foundation for production and sales, and explore business opportunities in mushroom-related fields In order to meet the global health-consciousness trend, we are working to expand the consumption of mushrooms, a natural foodstuff. We will build our own production and sales infrastructure overseas. We will explore business opportunities in the mushroom cultivation and related areas (upstream to downstream). [Quantitative targets of the Medium-term Business Plan (Consolidated basis)] Item Revenue Overseas Revenue Ratio Core EBITDA Margin* FYE March 2026 (Target) Around ¥60.0 billion Around 30% Around 20% Around 10% ROIC *Core EBITDA Margin = Core EBITDA / Revenue Core EBITDA: IFRS operating income excluding the effect of applying IAS 41 “Agriculture”, other income and expenses, and one-time income and expenses, plus depreciation and amortization For details, please refer to the “Medium-Term Business Plan for FYE March 31, 2022 to FYE March 31, 2026” released on November 4, 2021. The status of income and profit during the current consolidated fiscal year is as follows. Total income was ¥36,458 million (-8.2% year-on-year), of which revenue was ¥24,224 million (-6.7% – 2 – year-on-year). In this total, revenue from the mushroom business was ¥23,892 million (-6.5% year-on-year). Gross profit decreased by 14.5% to ¥11,499 million due to a decrease in sales in the mushroom business caused by the weak domestic mushroom market and the start-up of new plants and product shipment by competitors, and an increase in utility costs caused by high fuel costs. Selling, general and administrative (SG&A) expenses were ¥6,024 million (-2.7% year-on-year) due to a decrease in freight and sales commissions, despite an increase in advertising expenses and the absence of listing-related expenses, etc., recorded in the same period of the previous fiscal year. As a result of the above, operating profit was ¥5,451 million (-23.2% year-on-year), and quarterly profit attributable to owners of the parent was ¥3,386 million (-20.6% year-on-year). In the current consolidated cumulative period, gains arising from changes in fair value related to the application of IFRS Agricultural Accounting (IAS 41) were included in total income of ¥12,234 million (-11.1% year-on-year) and the cost of sales of ¥11,253 million. (-12.4% year-on-year). [Business results for the nine months ended December 31, 2021] Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) % Change year-on-year Gains arising from changes in fair value Revenue Total income Operating profit Profit before tax Profit attributable to owners of parent 25,956 13,755 39,712 7,098 6,503 4,265 24,224 12,234 36,458 5,451 5,139 3,386 -6.7 -11.1 -8.2 -23.2 -21.0 -20.6 The status of revenue by business segment during the current consolidated fiscal year is as follows. [Mushroom business] 1) Maitake Promoting the functionality of maitake, we developed a product strategy that takes advantage of our extensive product lineup. In addition, as part of our efforts to promote maitake as a year-round foodstuff rather than a seasonal one, we proposed new ways of eating maitake through joint projects with other food manufacturers, aired TV commercials in western Japan, and actively proposed recipes to consumers through our recipe website. However, due to the aforementioned sluggishness of the domestic mushroom market and the impact of the start of new plants operation and product shipment by competitors, unit sales prices fell below those of the same period of the previous year, and sales volume decreased slightly from the same period of the previous year. As a result, revenue from the Maitake business decreased 7.4% year-on-year to ¥13,905 million. 2) Eringi In addition to achieving a stable supply by improving production quality, we have expanded our product lineup by introducing sliced products that are convenient for consumers to use immediately without any hassle. However, due to the aforementioned slump in the domestic mushroom market, both sales volume and sales unit price fell below the levels of the same period of the previous year. As a result, revenue from the eringi business decreased 8.0% year on year to ¥2,418 million. 3) Buna-shimeji While keeping a close eye on the fruit and vegetable market and market trends, we flexibly introduced products with different quantities, such as single stock products and double stock products, depending on the supply-demand balance. Sales volume increased compared to the same period of the previous – 3 – year, but unit sales prices remained weak. As a result, revenue from the buna-shimeji business was ¥4,612 million (-8.3% year-on-year). 4) Other mushrooms Mushrooms produced by Mitsukura Norin Co., Ltd. contributed to sales steadily. As a result, revenue from the other mushrooms business segment totaled ¥2,956 million (+2.4% year-on-year). [Other] Revenue in the “other” business is mainly derived from sales of health foods and sales of culture medium activators handled by Mizuho Norin Co, Ltd. In the first three quarters of the current fiscal year, sales volume of culture medium activators decreased. As a result, revenue from other businesses was ¥331 million (-15.4% year-on-year). Revenue by business segment is as follows. Nine months ended December 31, 2020 Nine months ended December 31, 2021 % Change year-on-year (Millions of yen) Mushroom business Maitake Eringi Buna-shimeji Other mushrooms Other Total Revenue 2. Analysis of Financial Position [Assets] 25,564 15,020 2,630 5,027 2,886 392 25,956 23,892 13,905 2,418 4,612 2,956 331 24,224 -6.5 -7.4 -8.0 -8.3 2.4 -15.4 -6.7 Total assets at the end of the third quarter of the current consolidated fiscal year (as of December 31, 2021) were ¥37,776 million (+¥2,132 million from the end of the previous consolidated fiscal year). Current assets were ¥11,751 million (+¥1,548 million from the end of the previous consolidated fiscal year). This was mainly due to a decrease of ¥984 million in cash and cash equivalents resulting from dividend payments, income tax payments, and increases of ¥1,434 million in trade and other receivables and ¥1,057 million in biological assets resulting from gains from changes in fair value. Non-current assets totaled ¥26,025 million (+¥583 million from the end of the previous consolidated fiscal year). This was mainly due to an increase of ¥916 million in property, plant and equipment as a result of the reinforcement and renewal of facilities related to the increased production of maitake and the transfer from investment real estate, and decreases of ¥218 million in investment real estate and ¥101 million in right-of-use assets as a result of the transfer to property, plant and equipment. [Liabilities] Total liabilities at the end of the third quarter of the current consolidated fiscal year were ¥26,838 million (+¥424 million from the end of the previous consolidated fiscal year). Current liabilities were ¥9,265 million (+¥1,650 million from the end of the previous consolidated fiscal year). This was mainly due to increases of ¥2,149 million in trade and other payables and ¥188 million in current portion of long-term loans payable, despite decreases of ¥333 million in accrued income taxes and ¥248 million in liabilities for employee benefits. Non-current liabilities were ¥17,572 million (-¥1,225 million from the end of the previous consolidated fiscal year). This was mainly due to a decrease of ¥1,111 million in borrowings as a result of scheduled repayment. [Equity] Total equity at the end of the third quarter of the current consolidated fiscal year was ¥10,938 million (+¥1,708 million from the end of the previous consolidated fiscal year). This was mainly due to an – 4 – increase of ¥1,710 million in retained earnings resulting from the recording of ¥3,386 million in quarterly profit attributable to owners of the parent, despite the payment of ¥1,676 million in dividends. 3. Analysis of Cash Flows The balance of cash and cash equivalents at the end of the third quarter of the current consolidated fiscal year decreased by ¥984 million from the end of the previous consolidated fiscal year to ¥2,793 million. The status of each cash flow and their factors are as follows: [Net cash flows from operating activities] The amount of funds gained as a result of operating activities was ¥3,586 million (the amount gained was ¥5,844 million in the same period of the previous year). This was mainly due to the posting of profit before income taxes and minority interests of ¥5,139 million, depreciation and amortization of ¥1,476 million, and an increase in trade and other payables of ¥1,529 million, which increased cash, and an increase in trade and other receivables of ¥1,425 million, an increase in biological assets of ¥1,057 million, and income taxes paid of ¥2,097 million. [Net cash flows from investing activities] Funds used as a result of investment activities were ¥1,572 million (the amount used was ¥2,981 million in the same period of the previous year). This was mainly due to the expenditure of ¥1,555 million for the acquisition of property, plant and equipment for the expansion and renewal of facilities related to increased production of maitake. [Net cash flows from financing activities] Funds used as a result of financing activities amounted to ¥2,998 million (the amount used was ¥5,175 million in the same period of the previous year). This was mainly due to the repayment of long-term loans payable of ¥1,156 million due to scheduled repayments and dividend payments of ¥1,671 million. 4. Explanations about Forward-Looking Information Including Forecast of Consolidated Financial Results As for the consolidated financial forecast for the fiscal year ending March 31, 2022, please refer to the “Notice Concerning Revision of Full-year Earnings Forecast” released today (February 3, 2022). The financial results forecast is based on the information available at this time, and the actual financial results may differ due to various factors. – 5 – Ⅱ. Summarized Quarterly Consolidated Financial Statements and Significant Notes 1. Summarized Quarterly Consolidated Statements of Financial Position (Millions of yen) As of March 31, 2021 As of December 31, 2021 Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Biological assets Other current assets Total current assets Non-current assets Property, plant and equipment Investment property Goodwill and intangible assets Right-of-use assets Retirement benefit asset Other financial assets Deferred tax assets Other non-current assets Total non-current assets Total assets 3,777 2,021 1,390 2,904 108 10,202 18,031 316 5,304 461 450 146 638 92 25,441 35,644 2,793 3,456 1,443 3,962 96 11,751 18,948 97 5,297 360 438 163 652 67 26,025 37,776 – 6 – (Millions of yen) As of March 31, 2021 As of December 31, 2021 1,970 1,784 1,753 1,132 205 57 19 690 7,614 18,351 360 3 17 62 2 18,798 26,413 119 (6,026) 15,117 21 9,233 (2) 9,230 35,644 4,120 1,450 1,504 1,321 201 – 182 484 9,265 17,239 250 3 17 59 2 17,572 26,838 100 (6,006) 16,828 18 10,940 (1) 10,938 37,776 Liabilities Current liabilities Trade and other payables Income taxes payable Employee benefits accruals Current portion of long-term borrowings Lease liabilities Provisions Other financial liabilities Other current liabilities Total current liabilities Non-current liabilities Borrowings Lease liabilities Deferred tax liabilities Provisions Other financial liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Capital surplus Retained earnings Other components of equity Total equity attributable to owners of parent Non-controlling interests Total equity Total liabilities and equity – 7 – 2. Summarized Quarterly Consolidated Statements of Income and Comprehensive Income (Summarized Quarterly Consolidated Statements of Income) (Millions of yen) Nine months ended December 31, 2020 Nine months ended December 31, 2021 Income Revenue Gains arising from changes in fair value Selling, general and administrative expenses Other income Other expenses Total income Cost of sales Gross profit Operating profit Finance income Finance expenses Profit before tax Income tax expense Profit Profit attributable to Owners of parent Non-controlling interests Earnings per share Basic earnings per share (Yen) Diluted earnings per share (Yen) 25,956 13,755 39,712 26,263 13,448 6,191 37 195 7,098 1 595 6,503 2,244 4,259 4,265 (5) 107.04 106.94 24,224 12,234 36,458 24,959 11,499 6,024 34 58 5,451 2 314 5,139 1,752 3,387 3,386 0 84.85 84.83 Management believes that the information of “material costs, labor costs, etc.” facilitates comparison between the Group and competitors by users of financial statements. Therefore, we disclose the information voluntarily as a note in the summarized consolidated statements of income. “Material costs, labor costs, etc.” are the production costs of finished goods and purchasing costs of other goods sold by the Group, excluding the gains arising from changes in fair value recognized under IAS 41 “Agriculture”. (*1) Components of cost of sales Material costs, labor costs, etc. Gains arising from changes in fair value Total 13,421 12,841 26,263 13,705 11,253 24,959 – 8 – (Summarized Quarterly Consolidated Statements of Comprehensive Income) (Millions of yen) Nine months ended December 31, 2020 Nine months ended December 31, 2021 4,259 3,387 Profit Other comprehensive income (After tax effect deduction) Items that will not be reclassified to profit or loss Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income Total of items that will not be reclassified to profit or loss Total other comprehensive income (After tax effect deduction) Comprehensive income Comprehensive income attributable to Owners of parent Non-controlling interests 11 11 11 4,271 4,277 (5) (2) (2) (2) 3,384 3,383 0 – 9 – 3. Summarized Quarterly Consolidated Statement of Changes in Equity Nine months ended December 31, 2020 (From April 1, 2020 to December 31, 2020) Share capital Capital surplus Retained earnings Other components of equity Balance at beginning of period 100 (6,046) 10,828 – – – – – – – – – – – – – – Profit Other comprehensive income Comprehensive income Capital reduction Dividends of surplus Transfer from other components of equity to retained earnings Other Total Profit Other comprehensive income Comprehensive income Dividends of surplus Transfer from other components of equity to retained earnings Other Total (557) (556) (556) Balance at end of period 100 (6,046) 14,536 30 8,620 (4) 8,615 Nine months ended December 31, 2021 (From April 1, 2021 to December 31, 2021) Share capital Capital surplus Retained earnings Other components of equity Total equity attributable to owners of parent (Millions of yen) Non-controlling interests Total Balance at beginning of period 119 (6,026) 15,117 (2) 9,230 Capital reduction (19) 19 (1,676) (1,676) (1,676) Balance at end of period 100 (6,006) 16,828 10,940 (1) 10,938 (19) 19 (1,675) (1,676) (1,676) Total equity attributable to owners of parent (Millions of yen) Non-controlling interests Total 4,899 4,265 11 4,901 4,259 11 4,265 4,277 (5) 4,271 (557) (557) (557) 17 – 11 11 – – – 1 1 21 – (2) (2) – – (0) – (0) 18 – – 1 – – – 9,233 3,386 (2) 3,383 1 (5) – – – – – – 0 – 0 – – – – – – – 1 – – – 3,387 (2) 3,384 – – – – – – – – – – – – – – 4,265 – – – – 3,386 3,386 – – 0 – – 10 – 4. Summarized Quarterly Consolidated Statements of Cash flows (Millions of yen) Nine months ended December 31, 2020 Nine months ended December 31, 2021 Cash flows from operating activities Profit before tax Depreciation and amortization Impairment losses Interest expenses Commission for syndicate loan Loss (gain) on sale of fixed assets Loss on retirement of fixed assets Decrease (increase) in trade and other receivables Decrease (increase) in inventories Decrease (increase) in biological assets Increase (decrease) in trade and other payables Decrease (increase) in retirement benefit asset Increase (decrease) in employee benefit liabilities Other Subtotal Interest paid Payments of commission for syndicate loan Income taxes paid Income taxes refund Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Other Net cash provided by (used in) investing activities Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Repayments of long-term borrowings Repayments of lease liabilities Dividends paid Other Net cash provided by (used in) financing activities Effect of exchange rate changes 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 6,503 1,472 10 371 222 (2) 81 (1,391) (92) (992) 1,431 17 50 477 8,160 (105) (11) (2,347) 149 5,844 (2,972) 3 (4) (8) (2,981) – – (4,462) (163) (549) (0) (5,175) (0) (2,312) 4,461 2,148 5,139 1,476 – 300 13 (0) 43 (1,425) (52) (1,057) 1,529 11 (248) 35 5,766 (68) (13) (2,097) 0 3,586 (1,555) 0 (7) (10) (1,572) 1,000 (1,000) (1,156) (170) (1,671) (0) (2,998) 0 (984) 3,777 2,793 – 11 – 5. Notes to Summarized Consolidated Financial Statements (Going Concern Assumptions) Not applicable. (Segment Information) (1) Reportable segments The Group’s reportable segments are components of the Group for which separate financial information is available and regular evaluation by the Board of Directors, chief operating decision maker, is being performed in order to make decisions about resources to be allocated and to assess its performance. The mushroom business is listed as a reporting segment as the Group has a comprehensive strategy for products and services and is expanding its business activities. “Other” includes businesses that are not included in the reportable segment. The Group aggregates Maitake business, Eringi business, Buna-shimeji business, etc. as a reportable segment, “mushroom business,” in terms of similarity of economic characteristics such as revenue trends, and the following features are all similar in this segment: (a) the nature of products and services, (b) the nature of the production processes, (c) the type of customers of the products and the services, (d) the method used to deliver the products or provide the services, and (e) the nature of regulatory environment. Description of the reportable segment is as follows: Mushroom business Production and sales of Maitake, Eringi, Buna-shimeji and other mushrooms Description of business (2）Reportable segments information The accounting methods of reportable business segments are the same as the Group’s accounting policies. Figures reported as segment profit are based on operating profit reported in the summarized consolidated statements of income. Revenues from intersegment transactions are based on the current market prices. Nine months ended December 31, 2020 (From April 1, 2020 to December 31, 2020) (Millions of yen) Mushroom business Others Total Adjustment items (*) Revenue Revenue from external customers Intersegment revenue Total revenue Segment profit (loss) Finance income Finance expenses Profit before tax 25,564 – 25,564 7,070 392 20 412 103 25,956 20 25,977 7,173 (Note) Adjustment items for segment profit (loss) include corporate expenses that are not allocated to each business segment. Per consolidated financial statements 25,956 – 25,956 7,098 1 595 6,503 – (20) (20) (75) – 12 – Revenue Revenue from external customers Intersegment revenue Total revenue Segment profit (loss) Finance income Finance expenses Profit before tax (Earnings per Share) Nine months ended December 31, 2021 (From April 1, 2021 to December 31, 2021) (Millions of yen) Mushroom business Others Total Adjustment items (*) 23,892 – 23,892 5,373 331 1 333 74 24,224 1 24,225 5,448 Per consolidated financial statements 24,224 – 24,224 5,451 2 314 5,139 – (1) (1) 3 (Note) Adjustment items for segment profit (loss) include corporate expenses that are not allocated to each business segment. Calculation of basic earnings per share and diluted earnings per share are described below. Nine months ended December 31, 2020 (Unit) Nine months ended December 31, 2021 Basic earnings per share Average number of common shares during the period Basic earnings per share Diluted earnings per share Profit attributable to owners of parent Profit not attributable to common shareholders of parent (Millions of yen) (Millions of yen) Profit used for calculation of basic earnings per share (Millions of yen) (Thousand shares) (Yen) (Millions of yen) (Millions of yen) (Millions of yen) (Thousand shares) (Thousand shares) Profit used for calculation of diluted earnings per share Average number of common shares during the period Increase of shares due to stock acquisition rights Profit used for calculation of basic earnings per share Adjustment Average number of common shares during the period after dilution (Thousand shares) Diluted earnings per share (Yen) 4,265 – 4,265 39,850 107.04 4,265 – 4,265 39,850 36 39,886 106.94 3,386 – 3,386 39,910 84.85 3,386 – 3,386 39,910 7 39,918 84.83 (Note) Effective July 30, 2020, the Company split the shares of its common stock on a 100-for-1 basis. Basic earnings per share and diluted earnings per share have been restated, as appropriate, on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. (Significant Subsequent Events) Not applicable. – 13 –