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 Three Months Ended May 31, 2022
(Based on Japanese GAAP)
July 13, 2022
Company name:
MORESCO Corporation
Stock exchange listing: Tokyo
Stock code:
Representative:

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

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

Hirofumi Fujimoto
July 13, 2022

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 three months ended May 31, 2022 (from March 1, 2022 to May 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended May 31, 2022
Three months ended May 31, 2021Millions of yen
7,050
6,656

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
5.9
201 (61.4)
471 (34.7)
317 (71.0)
13.1
520 265.0
721
–
1,095
–

Earnings per share

Diluted earnings per share

Yen
33.84
116.80Three months ended May 31, 2022
Three months ended May 31, 2021

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2022
As of February 28, 2022

Net assets

Millions of yen
29,691
29,008Equity ratio

Millions of yen
21,121
20,551

Net assets per share%
62.3
61.9

Yen
1,971.47
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

Yen–

Yen
20.00

Yen
40.00

20.00

–

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
30,500
11.7
1,850
29.0
2,200
9.4
1,300 (28.1)
140.02

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 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 May 31, 2022

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

9,696,500 shares

316,570 shares As of February 28, 2022

316,570 shares

Number of treasury shares at the end of the period
As of May 31, 2022

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2022

9,379,930 shares Three months ended May 31, 2021

2

9,375,430 shares

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

As of May 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

4,001
6,8443,812
7,046

Merchandise and finished goods
Raw materials and supplies

2,935
2,391

3,147
2,580

Other
Allowance for doubtful accounts

461
(25)

607
(27)

16,607

17,165

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

3,540
2,035

3,556
2,037

Land
Other, net

1,954
774

1,960
777

Total property, plant and equipment

8,304

8,330

219

187

413

426

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets

633

614

Investments and other assets

3,465

3,583

Total non-current assets

12,401

12,52729,00829,691

Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade

4,308

4,419

Short-term borrowings
Income taxes payable

560
427

857
208

Provision for bonuses
Other

529
1,437

274
1,569

Total current liabilities

7,260

7,328

Non-current liabilities
Long-term borrowings

350

457

Retirement benefit liability
Other

531
316

535
251

Total non-current liabilities

1,197

1,242

8,457

8,570

Total liabilities

3

(Millions of yen)
As of February 28, 2022As of May 31, 2022

Net assets
Shareholders' equity
Share capital

2,118

2,118

Capital surplus
Retained earnings

1,976
13,517

1,976
13,647

Treasury shares

(384)

(384)

17,227

17,357

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

38505

46
900

Remeasurements of defined benefit plans

191

190

Total shareholders' equity
Accumulated other comprehensive income

735

1,135

Non-controlling interests

Total accumulated other comprehensive income

2,589

2,629

Total net assets

20,551

21,121

29,00829,691

Total 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)Three months ended

Three months ended

May 31, 2021

May 31, 2022

Net sales
Cost of sales

6,656
4,332

7,050
4,997

Gross profit

2,324

2,053

Selling, general and administrative expenses

1,805

1,852

520

201

51

6
161
123

43210

Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other

1717

Total non-operating income

208

277

Interest expenses
Loss on valuation of derivatives

3023

Other

31

Non-operating expenses

67

Ordinary profit

Total non-operating expenses

721

471

Extraordinary income
Gain on sale of non-current assets

833

–

833

–

Profit before income taxes

Total extraordinary income

1,555

471

Income taxes - current
Income taxes - deferred

573
(194)

197
(82)

379

116

1,176

356

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

581

381,095317

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

ProfitOther comprehensive income

Three months ended

Three months ended

May 31, 2021

May 31, 2022
1,176

356

15383

7485

1(2)

2522423

512

Comprehensive income

1,599

868

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,431

718

167

150

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 accountedfor using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6