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 Non-Consolidated Financial Results
for the Year Ended December 31, 2021
(Based on Japanese GAAP)
February 14, 2022
Company name:AIRTECH JAPAN,LTD.

Stock exchange listing: Tokyo
Stock code:
6291
Representative:
Inquiries:

URL

https://www.airtech.co.jp

President
Vice President

Shinya Hirasawa
Naoki Watanabe

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 29, 2022
March 29, 2022

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

March 30, 2022
Yes

Holding of financial results meeting:

Yes

TEL

03(3872)9192(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended December 31, 2021
Year ended December 31, 2020

Millions of yen
14,28912,487

Operating profit
%
14.4
19.6

Millions of yen
1,991
1,414

Diluted earnings pershare
Yen
Yen
153.03152.39114.29113.50Earnings per share
Year ended December 31, 2021
Year ended December 31, 2020

Ordinary profit

%
40.7
224.7

Millions of yen
2,195
1,562

Profit

%
40.5
166.8

Millions of yen
1,584
1,136%
39.4
180.4

Ordinary profit/total Operating profit/net
assetssales%%%
12.4
11.3
13.910.3
9.3
11.3

Profit/equity(2) Non-consolidated financial position
Total assets
As of December 31, 2021
As of December 31, 2020

Net assets

Equity ratio

Millions of yen
19,96818,829Millions of yen
13,456
12,164

Cash flows fromoperating activities
Millions of yen
1,799
914

Cash flows frominvesting activities
Millions of yen
(458)
(761)

Net assets per share%
67.2
64.4

Yen
1,293.71
1,174.55(3) Non-consolidated cash flows

Year ended December 31, 2021
Year ended December 31, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(71)
7,189
1,004
5,894

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2020
Year ended December 31, 2021
Year ending December 31, 2022
(Forecast)

Total cash
dividends (Total)

Total

Dividend payout
ratio (Nonconsolidated)

Ratio of dividends
to net assets (Nonconsolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

33.00
50.00

33.00
50.00

34051828.9
32.7

2.8
4.1

–0.00

–

50.00

50.00

144.2

3. Forecast of non-consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
13,000Operating profit% Millions of yen
(9.0)
1,500

Ordinary profit% Millions of yen(24.7)
1,650

Profit% Millions of yen(24.9)
1,170

Earnings per share%(26.2)

Yen
113.004. Notes(1) 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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2021

10,450,200 shares As of December 31, 2020

10,403,500 shares

Number of treasury shares at the end of the period
As of December 31, 2021

72,019 shares As of December 31, 2020

75,699 shares

10,353,661 shares Year ended December 31, 2020

9,944,064 shares

Average number of shares during the period
Year ended December 31, 2021

2

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of December 31, 2020

As of December 31, 2021

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

6,520,039
1,506,478

7,815,177
1,177,512

Accounts receivable - trade
Electronically recorded monetary claims - operating

3,242,362
1,206,374

2,356,2031,310,824

Securities
Merchandise and finished goods

452
840,165499
1,513,461

Work in process
Raw materials and supplies

870,751
387,413709,156
483,907

Prepaid expenses
Other

10,662
13,843

26,315
6,367

Allowance for doubtful accounts(8,947)(4,511)

14,589,596

15,394,914

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

2,331,643

2,804,831(1,375,085)(1,439,270)

956,557

1,365,561

75,805

120,495

Accumulated depreciation(62,166)(67,859)

Structures, net

13,63952,636

Accumulated depreciation
Buildings, net
Structures

Machinery and equipment

349,000

356,608

Accumulated depreciation(243,586)(261,974)

Machinery and equipment, net

105,413

94,6338,310

10,841(8,310)(5,210)05,630

VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures

369,926

405,523

Accumulated depreciation(331,497)(346,687)

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

38,42858,8352,055,014

2,226,684

395,70376,3073,564,757

3,880,289109,233
2,321

81,679
331

3,471

3,471

115,026

85,482Intangible assets
SoftwareLeased assets
Telephone subscription right
Total intangible assets3

(Thousands of yen)
As of December 31, 2020

As of December 31, 2021

Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates

123,563
79,781

91,534
134,741

Distressed receivables
Deferred tax assets

26,824
338,750

11,640318,159

Other
Allowance for doubtful accounts

18,082(26,824)

62,987(11,640)

Total investments and other assets

560,177

607,423

Total non-current assets

4,239,962

4,573,195

18,829,558

19,968,110

698,263

577,4312,327,072
621,8242,247,096
489,282

Short-term borrowings
Current portion of bonds payable

300,000–

280,000
100,000

Current portion of long-term borrowings
Lease obligations

44,268
4,704

74,256
2,913

Accounts payable - otherAccrued expenses

542,643
281,393510,120
275,468

Income taxes payable
Advances received

407,141
177,510427,318
177,541

Deposits received
Provision for bonuses

106,010
108,522

105,205
115,449

Provision for loss on order received
Provision for product warranties

4,109
51,242

4,949
9,083

Other

4,084

8,347

5,678,790

5,404,464

Bonds payable
Long-term borrowings

100,000
163,035–
410,785

Lease obligations
Provision for retirement benefits

9,380
701,519

6,467
659,423

Asset retirement obligations
Other

12,291–

14,712
15,920Total non-current liabilities

986,227

1,107,307

6,665,018

6,511,771

Total assets
Liabilities
Current liabilities
Notes payable - trade
Electronically recorded obligations - operating
Accounts payable - trade

Total current liabilities
Non-current liabilities

Total liabilities

4

(Thousands of yen)
As of December 31, 2020

As of December 31, 2021

Net assets
Shareholders' equity
Share capital

2,056,919

2,084,215

Capital surplus
Legal capital surplus

2,064,277

2,091,567

Other capital surplus

33,97335,694

Total capital surplus

2,098,251

2,127,262

132,600

132,600

303,000
7,579,097

303,000
8,822,657

8,014,697

9,258,257

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares(49,841)(47,235)

12,120,026

13,422,499

Valuation difference on available-for-sale securities

10,453

3,832

Total valuation and translation adjustments

10,453

3,832

34,06030,006

12,164,540

13,456,338

18,829,558

19,968,110

Total shareholders' equity
Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

5Non-consolidated statements of income(Thousands of yen)

Net sales
Net sales of finished goods

Fiscal year ended

Fiscal year ended

December 31, 2020December 31, 2021

12,229,149

14,058,843

258,187

230,272

12,487,337

14,289,116

705,089
11,572

821,641
18,524

Cost of products manufactured
Cost of purchased goods

9,008,882
197,071

10,599,388
170,044

Total

9,922,614

11,609,598

821,641
18,5241,500,923
12,537

9,082,448

10,096,136

9,927
4,109

4,109
4,949

3,410,706

4,192,138

473,248635,624

Travel and transportation expenses
Remuneration for directors (and other officers)

58,411
116,385

60,942
104,678

Salaries and allowances
Bonuses

532,090
179,159

540,936176,575

Provision for bonuses
Retirement benefit expenses

30,58434,08331,281
34,475

Provision for product warranties
Provision of allowance for doubtful accounts

24,425(19,072)(37,761)(18,485)

Legal welfare expenses
Depreciation

122,081
14,871

122,294
33,398Rent expenses
Research and development expenses

28,893112,813

34,389119,527

Other

287,949

363,025

1,995,924

2,200,902

1,414,782

1,991,236

417

106

Dividend income
Foreign exchange gains

168,052–

158,555
24,056

Other

15,696

31,063

Total non-operating income

184,165

213,782

Net sales of goods
Total net sales
Cost of sales
Beginning finished goods inventory
Beginning merchandise inventory

Ending finished goods inventory
Ending merchandise inventory
Total cost of sales
Reversal For Loss On Order
Provision For Loss On Order
Gross profit
Selling, general and administrative expenses
Freight Charge

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income

6(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2020

December 31, 2021

Non-operating expenses
Interest expenses

2,281

2,448Interest on bonds
Share issuance costs

300
12,574300
39

Foreign exchange losses
Foreign withholding tax

11,991
9,116

–
4,828

Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities

253

1,513

36,5189,129

1,562,429

2,195,888–

26,971

Total extraordinary income–

26,971

Extraordinary losses
Loss on valuation of membership

–

4,420

–

4,420

Profit before income taxes

Total extraordinary losses

1,562,429

2,218,439

Income taxes - current
Income taxes - deferred

456,905(30,944)611,724
22,338

Total income taxes

425,960

634,063

1,136,469

1,584,376

Profit7

Non-consolidated statements of changes in equity
Fiscal year ended December 31, 2020
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of period

Share capital

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus1,517,929

1,525,338–

1,525,338

538,990538,939

Legal retained
earnings
General reserve

132,600

303,000

Retainedearnings
broughtforward
6,639,370

Changes during period
Issuance of new shares - exerciseof share acquisition rights

538,939

Dividends of surplus(196,741)

Profit1,136,469

Disposal of treasury shares

33,97333,973

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

538,990538,939

33,973572,913––939,727

2,056,919

2,064,277

33,973

2,098,251

132,600

303,000

7,579,097

Valuation and translation
adjustments

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning of period

7,074,970

Treasury shares

Total
shareholders'equity

Valuationdifference on
available-forsale securities

Total valuationand translation
adjustments(101,823)

10,016,414

18,542

18,542

Shareacquisitionrights77,190Total net assets

10,112,147

Changes during period
Issuance of new shares - exerciseof share acquisition rights

1,077,929

1,077,929

Dividends of surplus(196,741)(196,741)(196,741)

Profit1,136,469

1,136,469

1,136,469

85,95585,955

Disposal of treasury shares

51,982

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period(8,089)(8,089)(43,130)(51,219)939,727

51,982

2,103,612(8,089)(8,089)(43,130)

2,052,393

8,014,697(49,841)

12,120,026

10,453

10,45334,06012,164,540

8Fiscal year ended December 31, 2021
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of period

Share capital

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus2,056,919

2,064,277

33,973

2,098,251

27,29627,289Legal retainedearnings
General reserve

132,600303,000

Retainedearnings
brought
forward7,579,097

Changes during period
Issuance of new shares - exerciseof share acquisition rights

27,289Dividends of surplus(340,817)

Profit

1,584,376

Disposal of treasury shares

1,720

1,720

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

27,29627,2891,720

29,010––1,243,559

2,084,215

2,091,567

35,694

2,127,262

132,600

303,000

8,822,657

Valuation and translation
adjustments

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning of period

8,014,697

Treasury shares

Total
shareholders'equityValuationdifference on
available-forsale securities

Total valuationand translation
adjustments(49,841)

12,120,026

10,453

10,453

Shareacquisitionrights

34,060Total net assets

12,164,540

Changes during period
Issuance of new shares - exerciseof share acquisition rights

54,58654,586

Dividends of surplus(340,817)(340,817)(340,817)

Profit

1,584,376

1,584,376

1,584,376

4,326

4,326

Disposal of treasury shares

2,606

Net changes in items other thanshareholders' equity(6,620)(6,620)(4,054)(10,674)

Total changes during period

1,243,559

2,606

1,302,472(6,620)(6,620)(4,054)

1,291797

Balance at end of period

9,258,257(47,235)

13,422,499

3,832

3,832

30,006

13,456,338

9

Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for loss on order received
Increase (decrease) in provision for product warranties
Loss (gain) on sale of investment securities
Interest and dividend income
Interest expenses on borrowings and bonds
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Other, net

Fiscal year ended

Fiscal year ended

December 31, 2020

December 31, 2021

1,562,429
109,653(19,072)
21,049(31,440)(5,818)24,425–(168,469)
2,581
10,984(1,715,722)(586,693)
1,457,598(27,057)
86,577
141,688
77,5682,218,439
141,458(19,619)
6,927(42,096)840(42,159)(26,971)(158,662)
2,748(25,846)
1,110,674(608,194)(333,350)(16,752)(5,889)30
33,364

Subtotal

940,2822,234,944

Interest and dividends received
Interest paid
Income taxes paid

168,501(2,568)(191,878)

158,669(2,796)(591,036)

Net cash provided by (used in) operating activities

914,336

1,799,781(671,255)
671,203–(643,137)(63,138)–(671,274)
671,256
50,632(443,365)(788)(8,700)(58,789)(54,960)

3,230(1,746)(761,886)(458,945)

400,000(400,000)
170,000(57,894)(196,672)
1,032,759
64,780(8,255)

380,000(400,000)
337,000(59,262)(337,663)
9,860
3,280
(4,729)Net cash provided by (used in) financing activities

1,004,717(71,514)

Effect of exchange rate change on cash and cash equivalents(10,516)

25,846

Net increase (decrease) in cash and cash equivalents

1,146,651

1,295,167

Cash and cash equivalents at beginning of period

4,748,099

5,894,750

Cash and cash equivalents at end of period

5,894,750

7,189,917

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of membership
Payments for investments in capital of subsidiaries andassociates
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Proceeds from issuance of shares
Proceeds from disposal of treasury shares
Other, net10