SEIHYO CO.,LTD.

セイヒョー is a company engaged in the manufacture and sale of frozen foods, primarily in Niigata Prefecture. Its core business is the ice cream division, through which it is working to expand sales of its own products as well as OEM products manufactured at its Toyama plant. Sales of its own products, including shaved-ice cups, are also growing, while family-size 2L vanilla ice cream has remained firm. In its main sales areas, centered on Niigata Prefecture, however, there were fewer extremely hot days than in the previous year, and the effects of falling temperatures and rainfall were also seen. Although the company worked to expand sales of “Momotaro,” whose multipack packaging was renewed, sales of other products excluding frozen confectionery products remained sluggish. In the Japanese confectionery division, sales of the Echigo specialty sasa dango and daifuku were weak, while the procurement and sales/logistics storage division was generally firm. Revenue for the interim accounting period was ¥3,097.776 million, up 24.9% year on year; ordinary profit was ¥202.632 million, down 29.9%; and interim net profit was ¥133.146 million, down 39.6%. Total assets at the end of the interim accounting period increased by ¥977 million from the end of the previous fiscal year to ¥4,966.438 million. Cash and cash equivalents at the end of the interim period were ¥400.120 million, cash and deposits were ¥400.120 million, accounts receivable were ¥1,472.689 million, merchandise and finished goods were ¥508.674 million, investment securities were ¥330.974 million, accounts payable were ¥510.286 million, short-term borrowings were ¥1,200 million, long-term borrowings were ¥316.652 million, and bonds were ¥50 million. Research and development expenses for the interim period were ¥9.355 million. There were no decisions to enter into or execution of any significant contracts. Details of the outlook and strategic direction are provided in a separate section.