Supplementary Explanatory Materials for the First Quarter of the Fiscal Year Ending March 2027 Financial Results | MEGMILK SNOW BRAND Co.,Ltd. (2270) timely disclosure

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¥100 million (year-on-year change in revenue)

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Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales1,551 Hundreds of millions of yen+1.8%

Operating profit36 Hundreds of millions of yen+5.8%

Ordinary income40 Hundreds of millions of yen-6.4%

Net income¥145 100 million +62.0%net income attributable to owners of the parent

Operating profit margin2.4 %

Selling, general and administrative expenses223 Hundreds of millions of yen

Gross Profit MarginGross profit margin: not disclosed. Cost of sales ratio was 83.2%, at the same level as in the year-earlier quarter.

Full-year earnings forecast

Net Sales

6,450 Hundreds of millions of yen

Operating profit

210 Hundreds of millions of yen

Ordinary income

218 Hundreds of millions of yen

Profit attributable to owners of parent

245 Hundreds of millions of yen

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Selling price variance40 Hundreds of millions of yen
Change in sales volume-8 Hundreds of millions of yen
Product mix variance4 Hundreds of millions of yen
Change in raw material costs-24 Hundreds of millions of yen
Change in operating costs-6 Hundreds of millions of yen
Change in fixed expenses-3 Hundreds of millions of yen
Change in advertising and sales promotion expenses-1 Hundreds of millions of yen

New initiatives

Advancement of the seven strategic priorities under Next Design 2030
Collaboration or reorganization involving 20–30% of domestic manufacturing sites
End of production at the Okoppe Plant (scheduled for FY2026)
End of production at the Kawagoe Plant (scheduled for FY2028)

Key KPIsA metric the company considers important as a management benchmark.

FY2030 KPI: Operating profit350 Hundreds of millions of yen
FY2030 KPI: Revenue from priority functional products870 Hundreds of millions of yen
FY2030 KPI: Revenue from alternative foods90 Hundreds of millions of yen
FY2030 KPI: Revenue from cheese770 Hundreds of millions of yen
FY2030 KPI: Revenue from white beverages1,000 Hundreds of millions of yen
Area planted with self-supplied feed crops97 thousand ha

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Selling price variance and changes in sales volume are presented, but no figures are provided for customer numbers or volume itself.

Segment results

Dairy products
Net Sales649
Revenue unitHundreds of millions of yen
Year-on-year change in revenue1.5
Operating profit13
Operating profit unitHundreds of millions of yen
Year-on-year operating profit growth-20.7
Beverages and Desserts
Net Sales666
Revenue unitHundreds of millions of yen
Year-on-year change in revenue1.8
Operating profit9
Operating profit unitHundreds of millions of yen
Year-on-year operating profit growth42
Feed and Seeds
Net Sales138
Revenue unitHundreds of millions of yen
Year-on-year change in revenue4.9
Operating profit5
Operating profit unitHundreds of millions of yen
Year-on-year operating profit growth-11.4
Other
Net Sales96
Revenue unitHundreds of millions of yen
Year-on-year change in revenue-0.8
Operating profit8
Operating profit unitHundreds of millions of yen
Year-on-year operating profit growth89

Medium-term management plan targets

Plan nameNext Design 2030

Target fiscal yearFY2030

Target value

Adjusted ROE9.0%

ROIC6.0%

Leverage1.5x

Net debt-to-equity ratio0.5x

NOPAT¥25 billion

Operating profit¥35.0 billion

Invested capital¥410.0 billion

Comparison with actual resultsFY2025 results and other figures compared with FY2030 targets

Financial targets

Adjusted ROE

Actual results5.8%

FY2030 target9.0%

ROIC

Actual results4.3%

FY2030 target6.0%

Leverage

Actual results1.3x

FY2030 target1.5x

Net debt-to-equity ratio

Actual results0.1x

FY2030 target0.5x

Equity ratio

FY2025 actual55.7%

Number of stores and locations

23 domestic manufacturing sites (FY2024). Production at the Kobe Plant ended in FY2025. Production at the Okoppe Plant is scheduled to end in FY2026, and production at the Kawagoe Plant in FY2028.

Number of employees

5,844 employees for FY2025. Changes during the period and hiring plans: Not disclosed.

Capital expenditures

¥53 100 million first-quarter actual

Payout ratio

FY2025 actual: 19.1%. Numerical targets for the payout ratio, total payout ratio and DOE: Not disclosed.

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	1,551 Hundreds of millions of yen (YoY +1.8%)
Operating profit	36 Hundreds of millions of yen (YoY +5.8%)
Ordinary income	40 Hundreds of millions of yen (YoY -6.4%)
Net income	¥145 100 million (net income attributable to owners of the parent) (YoY +62.0%)
Gross Profit Margin	Gross profit margin: not disclosed. Cost of sales ratio was 83.2%, at the same level as in the year-earlier quarter.
Operating profit margin	2.4 %
Selling, general and administrative expenses	223 Hundreds of millions of yen
Full-year earnings forecast	Net Sales 6,450 Hundreds of millions of yen / Operating profit 210 Hundreds of millions of yen / Ordinary income 218 Hundreds of millions of yen / Profit attributable to owners of parent 245 Hundreds of millions of yen
Segment results	Segment Dairy products / Net Sales 649 / Revenue unit Hundreds of millions of yen / Year-on-year change in revenue 1.5 / Operating profit 13 / Operating profit unit Hundreds of millions of yen / Year-on-year operating profit growth -20.7, Segment Beverages and Desserts / Net Sales 666 / Revenue unit Hundreds of millions of yen / Year-on-year change in revenue 1.8 / Operating profit 9 / Operating profit unit Hundreds of millions of yen / Year-on-year operating profit growth 42, Segment Feed and Seeds / Net Sales 138 / Revenue unit Hundreds of millions of yen / Year-on-year change in revenue 4.9 / Operating profit 5 / Operating profit unit Hundreds of millions of yen / Year-on-year operating profit growth -11.4, Segment Other / Net Sales 96 / Revenue unit Hundreds of millions of yen / Year-on-year change in revenue -0.8 / Operating profit 8 / Operating profit unit Hundreds of millions of yen / Year-on-year operating profit growth 89
Breakdown of Factors Affecting the Change	Factors Selling price variance / Amount 40 Hundreds of millions of yen, Factors Change in sales volume / Amount -8 Hundreds of millions of yen, Factors Product mix variance / Amount 4 Hundreds of millions of yen, Factors Change in raw material costs / Amount -24 Hundreds of millions of yen, Factors Change in operating costs / Amount -6 Hundreds of millions of yen, Factors Change in fixed expenses / Amount -3 Hundreds of millions of yen, Factors Change in advertising and sales promotion expenses / Amount -1 Hundreds of millions of yen
Key KPIs	Indicator name FY2030 KPI: Operating profit / Value 350 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name FY2030 KPI: Revenue from priority functional products / Value 870 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name FY2030 KPI: Revenue from alternative foods / Value 90 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name FY2030 KPI: Revenue from cheese / Value 770 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name FY2030 KPI: Revenue from white beverages / Value 1,000 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Area planted with self-supplied feed crops / Value 97 thousand ha / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Selling price variance and changes in sales volume are presented, but no figures are provided for customer numbers or volume itself.
Number of stores and locations	23 domestic manufacturing sites (FY2024). Production at the Kobe Plant ended in FY2025. Production at the Okoppe Plant is scheduled to end in FY2026, and production at the Kawagoe Plant in FY2028.
Number of employees	5,844 employees for FY2025. Changes during the period and hiring plans: Not disclosed.
Medium-term management plan targets	Plan name Next Design 2030 / Target fiscal year FY2030 / Target value Adjusted ROE 9.0% / ROIC 6.0% / Leverage 1.5x / Net debt-to-equity ratio 0.5x / NOPAT ¥25 billion / Operating profit ¥35.0 billion / Invested capital ¥410.0 billion / Comparison with actual results FY2025 results and other figures compared with FY2030 targets
Financial targets	Adjusted ROE Actual results 5.8% / FY2030 target 9.0% / ROIC Actual results 4.3% / FY2030 target 6.0% / Leverage Actual results 1.3x / FY2030 target 1.5x / Net debt-to-equity ratio Actual results 0.1x / FY2030 target 0.5x / Equity ratio FY2025 actual 55.7%
Payout ratio	FY2025 actual: 19.1%. Numerical targets for the payout ratio, total payout ratio and DOE: Not disclosed.
Capital expenditures	¥53 100 million (first-quarter actual)
New initiatives	Advancement of the seven strategic priorities under Next Design 2030, Collaboration or reorganization involving 20–30% of domestic manufacturing sites, End of production at the Okoppe Plant (scheduled for FY2026), End of production at the Kawagoe Plant (scheduled for FY2028)

Items this document does not state (10)

Results for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The ¥4.0 billion increase in selling prices and the ¥400 million favorable product-mix effect boosted operating profit, while higher raw-material costs reduced it by ¥2.4 billion, higher operating costs by ¥600 million, higher fixed expenses by ¥300 million, and higher advertising and promotional expenses by ¥100 million. The decrease in ordinary profit was attributable mainly to a decrease in non-operating income from ¥1.1 billion to ¥500 million. The increase in net income was attributable mainly to an increase in extraordinary income from ¥8.5 billion to ¥17.6 billion.

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