Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended November 30, 2022
(Based on Japanese GAAP)
January 13, 2023
Company name:
MORESCO Corporation
Stock exchange listing: Tokyo
Stock code:
Representative:

5018
URL http://www.moresco.co.jp/
Representative Director, President
Motohisa Morozumi

Inquiries:Director,Senior Executive OffcerScheduled date to file Quarterly Securities Report:

Hirofumi Fujimoto
January 13, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

NoTEL

078-303-9220(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the nine months ended November 30, 2022 (from March 1, 2022 to November 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended November 30, 2022
Nine months ended November 30, 2021

Millions of yen
22,47920,415Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
10.1
511 (62.8)
1,144 (34.0)
719 (58.5)
13.6
1,375 114.5
1,732 164.0
1,730 470.7

Earnings per share

Diluted earnings per share

Yen
77.24
184.52Nine months ended November 30, 2022
Nine months ended November 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2022
As of February 28, 2022

Net assets

Millions of yen
31,92929,008Equity ratio

Millions of yen
21,82020,551

Net assets per share%
59.6
61.9

Yen
2,060.80
1,914.94

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
20.00
20.00

Yen––

Yen
20.00

Yen
40.00

20.00

40.00

Year ending February 28, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
31,50015.4
1,110 (22.6)
1,700 (15.5)
1,000 (44.7)
107.71

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended November 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2022

9,696,500 shares As of February 28, 2022

9,696,500 shares

468,970 shares As of February 28, 2022

316,570 shares

Number of treasury shares at the end of the period
As of November 30, 2022

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended November 30, 2022

9,302,938 shares Nine months ended November 30, 2021

29,378,048 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2022

As of November 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

4,001
6,844

4,172
7,831

Merchandise and finished goods
Raw materials and supplies

2,935
2,391

3,407
2,904

Other
Allowance for doubtful accounts

461
(25)

641
(28)

16,60718,928

Buildings and structures, net
Machinery, equipment and vehicles, net

3,540
2,035

4,053
1,983

Land
Other, net

1,954
774

1,969
533

Total property, plant and equipment

8,304

8,537

219

124

413

520

Total current assets
Non-current assets
Property, plant and equipmentIntangible assets
Goodwill
Other
Total intangible assets

633

643

Investments and other assets

3,465

3,820

Total non-current assets

12,401

13,001

29,00831,929Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade

4,308

5,173

Short-term borrowings
Income taxes payable

560
427

1,549
107

Provision for bonuses
Other

529
1,437

291
1,846

Total current liabilities

7,260

8,967

Non-current liabilities
Long-term borrowings

350

307

Retirement benefit liability
Other531
316

555
280

Total non-current liabilities

1,197

1,141

8,457

10,108

Total liabilities

3

(Millions of yen)
As of February 28, 2022

As of November 30, 2022

Net assets
Shareholders' equity
Share capital

2,118

2,118

Capital surplus
Retained earnings

1,976
13,517

1,976
13,864

Treasury shares

(384)

(567)

17,227

17,392

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

38505

61
1,378

Remeasurements of defined benefit plans

191

186

Total shareholders' equity
Accumulated other comprehensive income

735

1,625

Non-controlling interests

Total accumulated other comprehensive income

2,589

2,804

Total net assets

20,551

21,82029,00831,929Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

November 30, 2021

November 30, 2022

Net sales
Cost of sales

20,415
13,64322,47916,291Gross profit

6,772

6,188

Selling, general and administrative expenses

5,397

5,677

Operating profit

1,375

511

Interest incomeDividend income

21101514

Foreign exchange gains
Share of profit of entities accounted for using equity method

161
126

482
95

Non-operating income

Other

62

46

Total non-operating income

380

652

Interest expenses
Other

14
9811

Total non-operating expenses

23

19

1,732

1,144

Gain on sale of non-current assets

833–

Total extraordinary income

833–

Non-operating expenses

Ordinary profit
Extraordinary income

Profit before income taxes

2,565

1,144

Income taxes - current

883

456

Income taxes - deferred

(198)

(108)

Total income taxes

685

3471,880

796

150

78

1,730

719

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

November 30, 2021

November 30, 2022

1,880

796

10417

27
1,074

3(6)

32

42462

1,137

Comprehensive income

2,342

1,934

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,104

1,608

238325

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6