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M morinaga Morinaga Milk Industry Co. , Ltd. Financial Results Presentation for the First Quarter of the Fiscal Year Ending March 31 , 2027 August 7 , 2026 1 . ( Materials published August 7 , 2026 ) 2 . Overview of the First Quarter of the FYE March 2027 Financial Results Outlook of Financial Results for FYE March 2027 Copyright © MORINAGA MILK INDUSTRY CO . , LTD . All Rights Reserved .
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 2 Preamble: Summary of Today’s Presentation (Key Points From 1Q Results, Future Outlook) 1. Overview of FYE March 2027 1Q results: net sales ¥147.1 billion (+2.4% YoY), operating profit ¥10.0 billion (+12.9% YoY) Higher net sales and profits (record high for profit), expansion of Global Business ・ Operating profit ¥10.0 billion (+¥1.1 billion YoY). Steady progress in 1Q. Significant contribution of Global Business (+¥2.3 billion YoY), profit composition ratio 52% Domestic business: ¥4.8 billion (-¥1.2 billion YoY). Sales situation varies by category, but overall volume decreased. Unable to fully offset higher costs through business growth. Impact of higher costs arising from Middle East situation around ¥0.7 billion (will increase in 2Q and beyond), mainly due topackaging materials, etc. Global Business: ¥5.2 billion (+¥2.3 billion YoY). At MILEI, year-on-year increases, higher selling unit prices drove higher revenue and profit against background of rising market price for whey protein. Probiotics, formula milk, etc. also contributed to higher sales and profits, profit contribution from depreciation of the yen. 2. Outlook for Financial Results for FYE March 2027: Global Business strong, operating profit revised up 1H: ¥20.0 billion (+¥2.1 billion vs. target); full year; ¥34.0 billion (+¥2.0 billion vs. target) ・ Approach to revising earnings forecasts: upward revision of Global Business, downward revision of domestic business Global Business (+¥4.2 billion vs. full-year target): Whey protein market prices have risen sharply, and MILEI has made steady progress in raising selling unit prices. Targets hiked significantly (lower revenue and profit to higher revenue and profit). Subsidiaries other than MILEI, and probiotics, are also projected todo well, so expect overshoot of initial forecasts. Domestic business (-¥2.2 billion vs. full-year target): Major impact from lower revenue in categories where we made price revisions, etc. last fiscal year, so have cut outlook for volume after price revisions in August/September. Despite strong sales for yogurt and some other categories, overall sales are behind forecasts.Costs remain high (continuation of Middle East situation, yen depreciation), and many elements for which estimates/impact are uncertain, including weather, logistics difficulties, etc. ・ Impact from the Middle East situation: Had factored negative impact of ¥4.0 billion up to September into initial forecasts. Although impact of cost increases expected to materialize in October and beyond, have already announced price revisions to address this (beverages, yogurt, chilled desserts, etc. in August; ice cream, cheese, infant formula, etc. in September). *The details of the shareholder benefit program for shareholders as of September 30, 2026, will be decided and disclosed by the end of August 2026.
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. Overview of the First Quarter of the FYE March 2027 Financial Results 1. Overview of the First Quarter of the FYE March 2027 Financial Results 2. Outlook of Financial Results for FYE March 2027 3
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 4 FYE Mar. 2026 1Q FYE Mar. 2027 1Q Year-on year change Year on year Net sales 143.7 147.1 +3.4 +2.4% Operating profit 8.8 10.0 +1.1 +12.9% Ordinary profit 9.5 10.6 +1.1 +11.3% Profit attributable to owners of parent 6.9 6.7 -0.2 -3.4% Operating profit to net sales 6.1% 6.8% Global Business sales ratio 13.6% 16.7% Financial Results for 1Q of FYE March 2027: Summary ◼ Operating profit ¥10.0 billion (+¥1.1 billion YoY), record high for profit Expansion of Global Business (+¥2.3 billion YoY), lower sales and profit in Domestic Business Global Business saw higher profit, centered on MILEI. Other Global Business of Growth Areas (probiotics, formula milk) also contributed to profit increase and solid progress in 1Q including the positive impact of yen depreciation. Sales situation in domestic business varies by category but overall volume to fall. While revenue rose for yogurt, beverages, and others, revenue has fallen more than expected for ice cream, milk, and other categories where price revisions were implemented and package volumes changed at end of previous fiscal year. Effects of growth for domestic business as a whole outweighed by higher costs, including increases associated with Middle East situation, raw materials, operational, depreciation, and other costs. Impact of higher costs arising from Middle East situation materialized at around ¥0.7 billion (will increase in 2Q and beyond), mainly due to packaging materials, etc. ◼ Implementation status of structural reforms in Japan • In terms of implementation status of structural reforms in Japan, announced or implemented the following in this 1Q •・ Announced discontinuation of production at HIROSHIMA MORINAGA MILK INDUSTRY CO., LTD. (scheduled for end of fiscal year ending March 31, 2027) in June •・ Implemented transfer of MORINAGA MILK INDUSTRY BUSINESS SERVICE CO., LTD. insurance agency business (Unit: billion yen) *Supplementary information on profit attributable to owners of parent • Extraordinary income (FYE March 2026 1Q): Gain on abolishment of retirement benefit plan +¥2.2 billion, etc. • Extraordinary income (FYE March 2027 1Q): Gain on sale of businesses +¥0.7 billion (transfer of MORINAGA MILK INDUSTRY BUSINESS SERVICE CO., LTD. insurance agency business), etc.
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 5 Net sales Operating profit (operating profit to net sales) Net sales Operating profit (operating profit to net sales) FYE Mar. 2026 1Q FYE Mar. 2027 1Q Year on year FYE Mar. 2026 1Q FYE Mar. 2027 1Q Year-on year change FYE Mar. 2027 1H target before revision Year on year FYE Mar. 2027 1H target before revision Year-on year change Domestic business* 124.1 122.6 -1.2% 5.9 (4.8%) 4.8 (3.9%) -1.2 256.5 +1.0% 11.1 (4.3%) -2.9 Global Business 19.6 24.5 +25.4% 2.9 (14.9%) 5.2 (21.2%) +2.3 43.5 +10.3% 6.8 (15.8%) ±0.0 Total 143.7 147.1 +2.4% 8.8 (6.1%) 10.0 (6.8%) +1.1 300.0 +2.3% 17.9 (6.0%) -2.9 Financial Results for 1Q of FYE March 2027: Summary (Domestic/Global) (Unit: billion yen) *Domestic Business = Total − Global Business ◼ Domestic business (operating profit ¥4.8 billion, -¥1.2 billion) While revenue rose for yogurt, beverages and other highly profitable categories, revenue fell more than expected for ice cream, milk, and other categories where price revisions were implemented and package volumes changed at end of previous fiscal year. Unable to fullyoffset higher costs, including increases associated with Middle East situation, raw materials, operational, and other costs and profit declined. Of -¥3.0 billion in forecast domestic cost impacts from Middle East situation (up to end September), effects in 1Q came to around -¥0.7 billion In Growth Areas, despite burden of depreciation on production line caused by concentrating resources for the future, “Bifidus yogurt” and “PARTHENO” recorded double-digit growth. In addition to above effects, ice cream recorded decrease in revenue due to temperatures in June and fewer number of limited edition seasonal products being lower than previous year. Mainstay segments recorded significantly lower revenue of milk as a result of production line reorganizations and changes in package volume, and other factors. Nurturing Areas and own subsidiaries saw higher sales and profit. ◼ Global Business (operating profit ¥5.2 billion, +¥2.3 billion YoY) At MILEI, higher selling unit prices drove higher revenue and profit against background of rising market price for whey protein. Growth Area of probiotics (for formula milk and supplements) saw revenue continue to grow at double-digit rate in continuation of previous fiscal year. Formula milk in Pakistan also expanded, driven mainly by locally manufactured products. Strategic transformation Areas in U.S. business went into the black in 1Q. Profit contribution from depreciation of the yen. Good progress versus initial forecasts. (Unit: billion yen)
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 6 Financial Results for 1Q of FYE March 2027: Factors Attributable to Increases and Decreases in Operating Profit • Change in selling unit prices: Effects of unexpired months from price revisions in previous fiscal year (yogurt, ice cream, milk, B-to-B commercial dairy products, etc.) • Sales volume: Larger negative impact, centered on milk and ice cream (price revisions and package volume changes at the end of previous fiscal year) • Product mix: Expanded high value-added products, including yogurt, probiotics, beverages, etc. Effects from volume changes, etc. • Raw materials / Energy: 1Q impact on domestic business of Middle East situation approx. -¥0.7 billion. Cost increases in packaging materials, etc. Also cost increases mainly in imported dairy ingredients, coffee, chocolate, and others • Operation cost: Greater than expected increases in costs, driven by logistics and manufacturing costs. Controlled some cost increases throughimpact of rationalization • Increase/decrease in overseas subsidiaries: In addition to impact of profit increase at MILEI, overseas subsidiaries in Pakistan, U.S., and Vietnam all contributed to higher profit. Profit contribution from depreciation of the yen. Key Points
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. Outlook of Financial Results for FYE March 2027 1. Overview of the First Quarter of the FYE March 2027 Financial Results 2. Outlook of Financial Results for FYE March 2027 7
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 8 Exchange Rate Assumptions (FYE2027) Average exchange rate during the period Initial (Yen) Revised (Yen) USD/Yen 155.0 160.0 EUR/Yen 180.0 185.0 Australian dollar/Yen 105.0 105.0 Outlook for Financial Results for FYE March 2027 FYE Mar. 2026 full year FYE Mar. 2027 full year target Year-on-year change Year on year vs. initial target FYE Mar. 2026 1H FYE Mar. 2027 1H target Year-on-year change Year on year vs. initial target Net sales 571.5 580.0 +8.5 +1.5% - 293.3 300.0 +6.7 +2.3% - Operating profit 34.5 34.0 -0.5 -1.4% +2.0 20.8 20.0 -0.8 -3.9% +2.1 Ordinary profit 37.1 35.0 -2.1 -5.7% +2.3 21.9 20.5 -1.4 -6.6% +2.1 Profit attributable to owners of parent 22.6 21.0 -1.6 -7.1% +1.0 14.6 14.0 -0.6 -4.4% +1.0 Operating profit to net sales 6.0% 5.9% 7.1% 6.7% Global Business sales ratio 15.3% 17.4% 13.4% 17.4% ROE (profit / equity capital) 8.4% 7.5% ROIC (NOPAT / invested capital) 6.3% 6.0% Annual dividend per share / Payout ratio 25 yen* 36.2% 25 yen* 38.4% (Unit: billion yen) 計画修正あり (Unit: billion yen) ◼ In response to positive outlook for Global Business, have revised for both first half and full year. Operating profit ¥34.0 billion (vs. initial target: +¥2.1 billion in 1H, -¥0.1 billion in 2H) – Global Business: Whey protein market prices have risen sharply in 2026. Although MILEI initially forecast lower revenue and profit due to a year-on-year reduction in volumes and the impact of high costs, it has made steady progress in raising selling unit prices, leading to the forecast of higher revenue and profit. Subsidiaries other than MILEI, and probiotics, are also projected to do well, so expect significant overshoot of initial forecasts – Domestic business: Post-price revision outlook worse than initially expected; forecasts revised down. Additional cost impacts from Middle East situation expected to emerge in October and beyond, and price revisions to address higher costs have already been announced. Despite strong sales for yogurt and some other categories, overall sales are behind forecasts, while costs remain high (ongoing Middle East situation, yen depreciation), and there are many uncertain such as sales trends after price revisions, weather, logistics difficulties, etc. Revised forecasts *Figures reflect 1:4 stock split implemented on July 1, 2026. Annual dividend per share for FYE March 2026 is calculated on assumption that the stock split had already taken place.
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 9 1H target Full-year target Net sales Operating profit (operating profit to net sales) Net sales Operating profit (operating profit to net sales) FYE Mar. 2026 FYE Mar. 2027 Year on year vs. initial target FYE Mar. 2026 FYE Mar. 2027 Year-on-year change vs. initial target FYE Mar. 2026 FYE Mar. 2027 Year on year vs. initial target FYE Mar. 2026 FYE Mar. 2027 Year-on-year change vs. initial target Domestic business* 253.9 247.8 -2.4% -8.7 14.0 (5.5%) 9.8 (4.0%) -4.2 -1.3 484.0 479.1 -1.0% -14.0 17.5 (3.6%) 13.8 (2.9%) -3.7 -2.2 Global Business 39.4 52.2 +32.5% +8.7 6.8 (17.4%) 10.2 (19.5%) +3.4 +3.4 87.5 100.9 +15.3% +14.0 17.0 (19.4%) 20.2 (20.0%) +3.2 +4.2 Total 293.3 300.0 +2.3% ±0.0 20.8 (7.1%) 20.0 (6.7%) -0.8 +2.1 571.5 580.0 +1.5% ±0.0 34.5 (6.0%) 34.0 (5.9%) -0.5 +2.0 Outlook for Financial Results for FYE March 2027: Target Sales and Operating Profit (Domestic/Global) *Domestic Business = Total − Global Business ◼ Domestic business (Full-year forecast: Revised operating profit downward from ¥16.0 billion to ¥13.8 billion, -¥2.2 billion vs. target) Revised down due to reflect sales volume, post-price revision outlook, high costs, etc. Raw material, operational, fixed manufacturing costs and other costs not associated with Middle East situation are in line with initial forecasts, have already announced price revisions to address cost increases driven by Middle East situation (beverages, yogurt, chilled desserts, etc. in August; ice cream, cheese, infant formula, etc. in September). Will continue to work for product mix improvements, etc. achieved through high value-added products, by appealing on basis of new value, and by streamlining through structural reforms. ◼ Global Business (Full-year forecast: Revised operating profit upward from ¥16.0 billion to ¥20.2 billion, +¥4.2 billion vs. target) Upward revision due to progress at subsidiaries, probiotics, etc. outstripping forecasts. MILEI expected to raise trade prices in 2Q and beyond in response to strength of whey protein market conditions. Despite initial forecast of lower revenue and profit, have revised to higher revenue and profit, with sales volume front-loaded in 1H due to strong demand. Global Business other than MILEI turned in solid performance in 1Q, have revised up 1H based on outlook for 2Q. Positive impact of yen depreciation (YoY) expected to emerge mostly in 1H (as of end June, yen was weakening against EUR, USD, PKR, etc.). Forecasting probiotics growth against background of rising numbers of recipe registrations in the Chinese market, while formula milk to expand in Pakistan due mainly to broader lineup of locally manufactured products. Effects of structural reform emerging in the U.S., a Strategic Transformation Area. High year-on-year hurdle in 2H. Profit composition ratio of the Global Business: 49％ in FYE March 2026 → 59％ in FYE March 2027 (Unit: billion yen) Revised forecasts
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 10 Revisions to Operating Profit Forecasts by Global/Domestic Business 4.0 9.8 0 50 100 2H 1H Revised target Initial target -1.3 vs. target +3.4 vs. target +0.8 vs. target -0.9 vs. target ◼ Reflect trends in sales volume, cost increases, etc. Sales trend post- price revisions in August/September likely to be more challenging than initially expected due to temperature and other factors ◼ Revised due to outlook for sales trend post-price revisions in August/September, etc. Will continue to work for product mix improvements, etc. achieved through high value-added products, by appealing on basis of new value, and by streamlining through structural reforms ◼ Upward revision due to progress at subsidiaries, probiotics, etc. outstripping initial forecasts. MILEI expected to raise trade prices in response to strength of whey protein market conditions. Sales volume to be front-loaded in 1H. 1H outlook for Global Business other than MILEI strong, hence upward revision. Effect of weak yen also contributing. ◼ MILEI forecasts hiked after taking into account progress in raising trade prices. Despite Global Business other than MILEI outperforming initial expectations in first half, growth in profit in second half already factored in, no major impact in terms of deviation from forecasts Operating profit forecasts for domestic business and Global Business (Unit: billion yen) Domestic business Global Business Key Points Revised forecasts 10.0 10.2 0 50 100 2H 1H Revised target Initial target
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 11 Outlook for Financial Results for FYE March 2027: Factors Attributable to Increases and Decreases in Operating Profit Key Points Revised forecasts • Change in selling unit prices: Deviation from initial forecasts to be driven mainly by August/September price revisions (yogurt, beverages, chilled desserts, ice cream, cheese, infant formula, etc.) • Sales volume: Forecasts revised due to 1Q sales volume, outlook for sales after price revisions. Despite strength in yogurt and “Mt. RAINIER CAFFÈ LATTE,” sales of ice cream and milk, etc. falling short of initial plans. • Raw materials / Energy: Forecast revision focused mainly on second half due to impact of Middle East situation. However, price revisions to address this reflected in selling unit price change, so there is essentially no change in the factors contributing to the decline in profits due to Middle East situation. • Operation cost: Costs exceeding initial expectations as a result of higher unit price for logistics expenses and lower sales volume leading to lower loading efficiency, etc. Succeeded in controlling some costs due to impact of temporary expenses in previous fiscal year, and effects of streamlining initiatives. • Sales promotion expenses: Focus and prioritization of resources exceeding initial expectations, seeking to commit expenses to further improve efficiency. • Increase/decrease in overseas subsidiaries: Upward revision focused mainly on first half. MILEI expected to hike trade prices in 2Q and beyond in response to strong whey protein market conditions, so have revised up profit forecasts. Upward revisions also for subsidiaries in Pakistan, U.S., Vietnam.
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 12 ◼ Probiotics (1Q net sales: +38% YoY (domestic and overseas)) • R&D news releases (New clinical trial study on Bifidobacterium longum BB536, etc.) ‒ Plain Yogurt Containing Bifidobacterium longum BB536, Combined with Lifestyle Improvements, May Slow the Pace of Aging — Published in the Scientific Journal Aging (July 27) ‒ A Study of Human Immune Cell Responsiveness, One of the Factors Associated with Aging Bifidobacteria May Help Suppress Excessive Inflammatory Responses — Published in the Scientific Journal iScience (July 27) ‒ Morinaga Milk Achieves Self-Affirmed GRAS Status for LAC-Living+ , Expanding U.S. Opportunities for Its Postbiotic Ingredient Clinical evidence–backed postbiotic supports mood and well-being with formulation flexibility for diverse applications (July 7) ‒ Bifidobacterium infantis M-63 May Support Bowel Habits and the Gut Environment in Infants and Toddlers During the Weaning Period Joint Research with Matsumoto City Hospital — Published in Scientific Journal Pediatric Research (May 11) ‒ Human-Residential Bifidobacterium longum BB536 May Improve Diarrhea-Related QOL Scores and Reduce Body-Odor-Related Metabolites in Male Athletes Consuming a High-Protein Diet — Published in the Scientific Journal Journal of the International Society of Sports Nutrition (May 8) ◼Structural reforms, merihari • Reorganization of production structures continuing ➢ Suspension of Production of HIROSHIMA MORINAGA MILK INDUSTRY CO., LTD. (due at the end of March 2027) (Published June 2) • Structural reforms to concentrate resources in Growth Areas ➢ Transfer of MORINAGA MILK INDUSTRY BUSINESS SERVICE CO., LTD. insurance agency business (Recorded +¥0.7 billion gain on sale of businesses) Others, topics
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. Appendix 13
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 14 Net sales Operating profit (operating profit to net sales) Net sales Operating profit (operating profit to net sales) FYE Mar. 2026 1Q FYE Mar. 2027 1Q Year on year FYE Mar. 2026 1Q FYE Mar. 2027 1Q Year-on-year change FYE Mar. 2027 1H target before revision Year on year FYE Mar. 2027 1H target before revision Year-on-year change Growth Segments 32.1 34.4 +7.2% 4.0 (12.6%) 4.3 (12.4%) +0.2 73.0 +11.5% 8.7 (11.9%) ±0.0 Mainstay Segments (Core, Fundamental, Strategic transformation) 90.2 91.1 +1.0% 4.5 (5.0%) 5.0 (5.5%) +0.5 181.2 +0.7% 7.8 (4.3%) -2.9 Nurturing/Other Segments 21.4 21.6 +1.0% 0.3 (1.5%) 0.7 (3.2%) +0.4 45.8 -4.3% 1.4 (3.1%) ±0.0 Total 143.7 147.1 +2.4% 8.8 (6.1%) 10.0 (6.8%) +1.1 300.0 +2.3% 17.9 (6.0%) -2.9 (Reference) Financial Results for 1Q of FYE March 2027: Summary by Segment ◼ Growth Segments (operating profit ¥4.3 billion, +¥0.2 billion YoY) In Growth Areas, significant increase in revenue in overseas categories, such as probiotics, and formula milk mainly in NutriCo Morinaga (Pakistan), drove substantial contribution to profit. In Japan, yogurt revenue grew 11%, mostly due to “Bifidus” and “PARTHENO,” but negative sales impact of ice cream (changes in package volume, decrease in June temperatures and limited edition seasonal products), effects of higher raw material and operational costs, as well as impact of increases in depreciation caused by concentration of resources on manufacturing lines for the future was considerable, so that Growth Segments as a whole came in only slightlyhigher than previous year. ◼ Mainstay Segments (operating profit ¥5.0 billion, +¥0.5 billion YoY) At MILEI, higher selling unit prices drove higher revenue and profit against background of rising market price for whey protein. Despite satisfactory progress in sales for some domestic categories, such as beverages, production line reorganizations and changes in package volume for milk, etc. led to significant decrease in revenue. Unable to fully offset increases in raw material and operational costs through growth in the domestic business, so Mainstay Segments as a whole camein higher than previous year. ◼ Nurturing/Other Segments (operating profit ¥0.7 billion, +¥0.4billion YoY) Nurturing Areas had positive impact on profit through supplement sales made via e-commerce channels, and own subsidiaries also recorded higher revenue and profit. (Unit: billion yen) (Unit: billion yen)
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 15 (Reference) Financial Results for 1Q of FYE March 2027: Net Sales by Category • Implementation status of main price revisions/package volume changes up to end 1Q Nutritional food products (May 2025); cheese (July 2025); milk, yogurt, chilled desserts, etc. (August 2025); ice cream (September 2025, February–March 2026); B- to-B commercial dairy products • Ice cream: Environment in 1Q characterized by June temperatures, number of limited edition seasonal products being lower than previous year • Milk, commercial milk (home deliveries, etc.): Implemented production line reorganizations, changes in package volume (March 2026) FYE Mar. 2026 1Q FYE Mar. 2027 1Q Year on year Growth Segments Yogurt 14.3 15.9 +11% Ice cream 13.4 12.6 -6% (Global) NutriCo Morinaga (Pakistan) 2.0 PKR 3.8 billion 2.5 PKR 4.4 billion +27% +18% Nurturing/Other Segments (Global) Morinaga Nutritional Foods Vietnam (Vietnam) 1.1 VND 191.4 billion 1.1 VND 183.2 billion -1% -4% FYE Mar. 2026 1Q FYE Mar. 2027 1Q Year on year Mainstay Segments (Core, Fundamental, Strategic Transformation) Beverages 13.8 14.7 +6% Cheese 6.4 6.5 +1% Nutritional food products 3.5 3.6 +3% CLINICO Co., Ltd. 6.6 6.7 +1% (Global) MILEI (Germany) 12.4 EUR 76 million 15.4 EUR 84 million +24% +10% Milk 10.4 8.4 -19% B-to-B (excluding domestic probiotics) 21.4 21.2 -1% Chilled desserts 2.0 1.9 -3% commercial milk (Home deliveries, etc.) 4.1 3.4 -16% (Global) Morinaga Nutritional Foods (U.S., including TIF) 2.1 USD 14 million 2.4 USD 15 million +17% +9% (Unit: billion yen) (Unit: billion yen) Key Points
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 16 (Reference) Outlook for Financial Results for FYE March 2027: Target Sales and Operating Profit for Each Segments (Unit: billion yen) ◼ Growth Segments Have raised 1H profit forecasts, mainly for favorable overseas categories (probiotics, formula milk). Domestic forecasts reflect higher costs and sales trend for ice cream, etc. Probiotics: Forecast continuation of growth; previous fiscal year’s revenue (FYE March. 2026): +25% Formula milk for overseas market: Seeking growth driven mostly by broader lineup of locally manufactured products in Pakistan. Yogurt , ice cream: As well as increases in costs, including those associated with Middle East situation, and depreciation burden arising from start of operation at new facilities, forecasts reflect sales trends up to this point and uncertain outlook after price revisions. ◼ Mainstay Segments MILEI: Initially forecast lower revenue and profit due to factoring in impact of disappearance of shipments from inventory inprevious fiscal year, and higher costs, but expected to raise trade prices in 2Q and beyond in response to strength of whey protein market, and made significant contribution to upward revision for Mainstay segments. Revised down almost every category in domestic business against backdrop of uncertain outlook for sales, etc. after price revisions. Forecasts assume negative impact on profit of higher costs, including Middle East situation, will be concentrated in the first half. ◼ Nurturing/Other Segments Revised due to steady contribution from Nurturing Areas and outlook for own subsidiaries. 計画修正あり 1H target Full-year target Net sales Operating profit (operating profit to net sales) Net sales Operating profit (operating profit to net sales) FYE Mar. 2026 FYE Mar. 2027 Year on year vs. initial target FYE Mar. 2026 FYE Mar. 2027 Year-on- year Change vs. initial target FYE Mar. 2026 FYE Mar. 2027 Year on year vs. initial target FYE Mar. 2026 FYE Mar. 2027 Year-on- year change vs. initial target Growth Segments 65.5 73.3 +12.0% +0.3 8.7 (13.3%) 9.2 (12.5%) +0.5 +0.5 124.5 136.6 +9.7% +0.8 12.6 (10.1%) 14.5 (10.6%) +2.0 +0.6 Mainstay Segments (Core, Fundamental, Strategic transformation) 180.0 189.3 +5.2% +8.1 10.7 (5.9%) 8.9 (4.7%) -1.8 +1.1 365.0 375.5 +2.9% +15.2 20.0 (5.5%) 16.8 (4.5%) -3.2 +0.4 Nurturing/Other Segments 47.9 37.4 -21.8% -8.4 1.4 (3.0%) 1.9 (5.0%) +0.5 +0.5 82.0 67.9 -17.2% -16.0 1.9 (2.3%) 2.7 (3.9%) +0.8 +1.0 Total 293.3 300.0 +2.3% ±0.0 20..8 (7.1%) 20.0 (6.7%) -0.8 +2.1 571.5 580.0 +1.5% ±0.0 34.5 (6.0%) 34.0 (5.9%) -0.5 +2.0 Revised forecasts
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 17 Revised forecasts(Reference) Outlook for Financial Results for FYE March 2027: Target Sales by Category FYE March 2027 target Net sales FYE Mar. 2027 1H target Year on year vs. initial target FYE Mar. 2027 full- year target Year on year vs. initial target Growth Segments Yogurt 31.5 +10% +0.3 62.3 +8% +1.0 Ice cream 28.8 -5% -2.6 46.7 -3% -3.8 (Global) NutriCo Morinaga (Pakistan) 5.6 +45% +1.0 11.1 +26% +1.5 Mainstay Segments (Core, Fundamental) Beverages 29.9 +3% -0.5 54.5 +2% -0.7 Cheese 12.9 +1% -0.7 26.1 -1% -1.3 Nutritional food products 6.9 +1% -0.1 14.2 +3% -0.1 CLINICO Co., Ltd. 13.8 +2% -0.5 27.9 +4% -1.9 (Global) MILEI (Germany) 32.3 +26% +6.5 62.1 +11% +10.4 Milk 17.4 -19% -2.2 33.3 -19% -4.8 B-to-B (excluding domestic probiotics) 43.1 ±0% +0.1 86.9 +1% +0.1 (Unit: billion yen) • Implementation status of price revisions and volume changes: cheese (July 2025); milk, yogurt, chilled desserts, etc. (August 2025); ice cream (September 2025 and February–March 2026); beverages, yogurt, chilled desserts (August); ice cream, cheese, infant formula (September); B-to-B commercial dairy products • Ice cream: New lines at Kobe Plant (FYE March 2027: “PARM” and “Pino”) • MILEI: whey protein market price continues to exceed initial expectations Key Points
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 18 Revised forecasts(Reference) Outlook for Financial Results for FYE March 2027: Factors Attributable to Increases and Decreases in Operating Profit • Change in selling unit prices: Revised initial forecast mainly for price revisions to be implemented in August/September. • Sales volume: Reflects 1Q sales trend for ice cream, milk, etc. and outlook for sales trend after 2Q price revisions. • Raw materials / Energy: Impact of Middle East situation on domestic business in first half already factored in at around ¥3.0 billion at time of initial forecast, higher packaging materials and other costs • Operation cost: Logistics costs expected to rise more than initially assumed due to higher unit prices and lower sales volume resulting in lower loading efficiency, etc. • Increase/decrease in overseas subsidiaries: Revised outlook for MILEI, also revised up outlook for other subsidiaries in Paki stan, U.S., Vietnam, etc. Key Points
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 19 (Reference) Dairy Ingredient Market Data Source: ZMB (culinary-use whey powder), Fonterra Global Dairy Trade auctions (lactose, cheddar cheese, powdered skim milk) *Areas without lines are those where no trades took place, FAO “FoodOutlook” (main regions dairy product production, exports, and imports) *Trade between EU member countries excluded, 2025 figures are forecasts, “Asia (excluding China)” calculated by the Company
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. 20
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Copyright © MORINAGA MILK INDUSTRY CO., LTD. All Rights Reserved. Cautionary Note Regarding Business Forecasts Figures for plans, policies, and other figures included in this report other than actual past results are forecasts of future business performance, and are calculated based on management’s estimates and understanding of the information available to the Company at the time this presentation was prepared. Accordingly, these forward‐looking figures contain elements of risk and uncertainty, and actual results may differ from these forecasts for a variety of reasons. These elements of potential risk and uncertainty include economic conditions in the Company’s major markets, trends in demand for the Company’s products, exchange rate movements, and regulatory changes and changes in accounting standards and business practices in Japan and other countries. Monetary amounts in this presentation are shown in billions of yen, with amounts of less than 0.1 billion yen rounded to the nearest 0.1 billion yen, and as a result, total figures may differ from the sum of the corresponding breakdown figures.