Intra-Group Reorganization of the Food Business and Brand Strengthening

「Profit increased because of revised pricing terms and the stable operation of the new plant of Magic Pearl Co., Ltd.」

「The meat division reported lower revenue because pork carcass prices were slightly below those in the same period of the previous year, but profit increased as reforms to its earnings structure progressed. The eggs division reported higher revenue as egg prices soared, but profit declined due to higher procurement costs and increased depreciation expenses associated with the start-up of the new マジックパール plant, among other factors.」

「The meat division reported losses in both the previous and current fiscal years, but the deficit narrowed significantly as pork prices remained slightly below those in the same period of the previous year and the company continued to reform its earnings structure. As a result, the food business as a whole recorded higher profit.」

「The meat division reported losses in both the previous and current fiscal years due to soaring pork prices, but the deficit narrowed as a result of efforts to strengthen its earnings structure against market fluctuations. The eggs division reported lower revenue and profit, mainly because egg prices remained below those in the same period of the previous year.」

「Against this backdrop, to achieve further growth and earnings expansion by realizing synergies between the livestock feed and food businesses, the group will continue to strengthen disease prevention and food safety and hygiene controls and improve production efficiency through investment to renew and expand production facilities.」

「Operating profit was ¥611 million, compared with an operating loss of ¥270 million in the same period of the previous year, mainly because revisions to sales price terms at food-related subsidiaries progressed.」

「In the food business, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥22.876 billion, up 17.5% year on year, mainly because livestock product prices remained higher than in the same period of the previous year. Operating profit was ¥277 million, compared with an operating loss of ¥201 million in the same period of the previous year, mainly because revisions to sales price terms progressed.」

「Against this backdrop, to achieve earnings growth through further growth and greater efficiency in the food business, one of the group's four earnings pillars, the group will continue to build capacity for higher production through capital investment, strengthen its disease prevention and food safety and hygiene controls, and improve production efficiency.」

「Name of combining company: マジックパール㈱ Name of combined company: 西日本マジックパール㈱ ② Date of business combination 1 April 2020 ③ Legal form of business combination Absorption-type merger in which マジックパール㈱ was the surviving company and 西日本マジックパール㈱ was the absorbed company」

「Effective 1 April 2020, マジックパール㈱ absorbed 西日本マジックパール㈱ in a merger, with マジックパール㈱ as the surviving company, and 西日本マジックパール㈱ was dissolved. Also effective 1 April 2020, the company transferred part of its livestock products business to マジックパール㈱ and ゴールドエッグ㈱.」

「Through the establishment of フィード・ワンフーズ株式会社 on 1 July 2018, the company aims to realize integration synergies, including cost reductions and improved production efficiency, by centrally managing the procurement, production and sales of meat products across the group, while developing branded products that only a feed company can offer.」

「Through the establishment of フィード・ワンフーズ株式会社 on 1 July 2018, the company aims to realize integration synergies, including cost reductions and improved production efficiency, by centrally managing the procurement, production and sales of meat products across the group, while developing branded products that only a feed company can offer.」

「Through the establishment of フィード・ワンフーズ株式会社 on 1 July 2018, the company aims to realize integration synergies, including cost reductions and improved production efficiency, by centrally managing the procurement, production and sales of meat products across the group, while developing branded products that only a feed company can offer.」

「In the Food Business segment, the company recognized an impairment loss of ¥74 million as an extraordinary loss in connection with its decision to assume the businesses of certain consolidated subsidiaries through a company split.」

「② Date of business combination 1 July 2018 ③ Legal form of business combination Absorption-type merger in which 株式会社横浜ミートセンター was the surviving company and 三河畜産工業株式会社 was the absorbed company ④ Name of company after the combination フィード・ワンフーズ株式会社」

「At a meeting of the Board of Directors held on 23 February 2018, the company resolved to absorb 三河畜産工業株式会社, another wholly owned subsidiary, into its wholly owned subsidiary 株式会社横浜ミートセンター, which would remain as the surviving company, to change the surviving company's corporate name, and to transfer the company's meat procurement and sales business to the surviving company. On 27 April 2018, the company entered into a merger agreement and a business transfer agreement.」

「Through the establishment of フィード・ワンフーズ株式会社, scheduled for 1 July 2018, the company aims to realize integration synergies, including cost reductions and improved production efficiency, by centrally managing the procurement, production and sales of meat products across the group, while developing branded products that only a feed company can offer.」