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, 2023
(Based on Japanese GAAP)
February 14, 2024
Company name:AIRTECH JAPAN,LTD.

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

URL

https://www.airtech.co.jp

President
Director, Administration Department

Shinya Hirasawa
Naoki Watanabe

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

March 28, 2024
March 28, 2024

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

March 29, 2024
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, 2023 (from January 1, 2023 to December 31, 2023)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended December 31, 2023
Year ended December 31, 2022

Millions of yen
13,646
13,172

Operating profit% Millions of yen
3.6
707
(7.8)
1,105

Diluted earnings pershare
Yen
Yen
70.85
70.76
99.08
98.92

Earnings per share
Year ended December 31, 2023
Year ended December 31, 2022

Ordinary profit% Millions of yen(36.0)
1,010(44.5)
1,396
Profit/equity

Profit% Millions of yen(27.7)
731(36.4)
1,017%(28.0)(35.8)

Ordinary profit/total Operating profit/net
assetssales%%%
5.2
5.1
5.2
7.4
7.0
8.4

(2) Non-consolidated financial position
Total assets
As of December 31, 2023
As of December 31, 2022

Net assets

Equity ratio

Millions of yen
19,58919,976

Millions of yen
14,107
13,926

Cash flows fromoperating activities
Millions of yen
454
228

Cash flows frominvesting activities
Millions of yen(774)(915)

Net assets per share%
72.0
69.6

Yen
1,360.01
1,350.02(3) Non-consolidated cash flows

Year ended December 31, 2023
Year ended December 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(675)
4,692
(866)
5,673

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

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(Forecast)

Total cash
dividends (Total)

Total

Dividend payout
ratio (Nonconsolidated)

Ratio of dividends
to net assets (Nonconsolidated)

YenYenYenYenYenMillions of yen%%

––

0.00
0.00

––

60.0060.00

60.00
60.00

624
626

60.7
86.0

4.5
4.4

–0.00

–

50.00

50.00

165.6

3. Forecast of non-consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
13,500Operating profit% Millions of yen
(1.1)
900

Ordinary profit% Millions of yen
27.3
1,100

Profit% Millions of yen
8.9
800

Earnings per share%
9.3

Yen
76.27

4. 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:
Yes
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, 2023

10,508,450 shares As of December 31, 2022

10,478,710 shares

Number of treasury shares at the end of the period
As of December 31, 2023

142,295 shares As of December 31, 2022

180,247 shares

10,329,984 shares Year ended December 31, 2022

10,264,607 shares

Average number of shares during the period
Year ended December 31, 2023

2

Non-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

6,365,019
1,018,837

5,388,660
726,912

Electronically recorded monetary claims - operating
Accounts receivable - trade

1,442,6642,019,544

1,360,882
2,248,443

Contract assets
Securities

1,330,097
586

1,246,200
651

Merchandise and finished goods
Work in process

1,179,158
673,923

1,324,225
568,747

Raw materials and supplies
Prepaid expenses

640,807
31,762

851,361
28,081Other
Allowance for doubtful accounts

43,538(122)

12,644(1,838)14,745,817

13,754,972

3,313,123(1,513,476)

3,353,516(1,599,642)

1,799,646

1,753,874

182,884(76,084)

182,884(87,529)

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net

106,800

95,354456,991(284,390)

590,086(293,038)

172,600

297,048

11,293(7,247)

12,724(9,118)

4,045

3,606

412,177(369,223)

440,812(389,113)

42,953

51,698Land
Construction in progress

2,226,684
10,7992,507,950
94,325

Total property, plant and equipment

4,363,531

4,803,857

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Software62,14840,329

Other

3,776

3,739

Total intangible assets

65,92544,0693

(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

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

301,683
134,741

510,674
134,741

Distressed receivables
Long-term prepaid expenses

117
13,906

117
12,655

Deferred tax assets
Other303,566
47,231

288,226
40,192

Allowance for doubtful accounts

(117)

(117)

Total investments and other assets

801,130

986,489

Total non-current assets

5,230,586

5,834,416

19,976,404

19,589,389

586,525
2,465,637

370,567
2,437,507

Accounts payable - trade
Short-term borrowings

439,226
280,000

457,661
280,000

Current portion of long-term borrowings
Lease liabilities

69,7902,555

54,264
2,555

Accounts payable - otherAccrued expenses

496,218
267,992

430,352
270,889

Income taxes payable
Advances received

125,064
115,119

97,00039,768Deposits received
Provision for bonuses

94,649111,697

98,203
105,371

Provision for loss on orders received
Provision for product warranties

7,067
13,14821,50817,184

Other

8,450

8,315

5,083,142

4,691,151

Long-term borrowings
Lease liabilities

304,575
3,911

203,551
1,355

Provision for retirement benefits
Provision for loss on guarantees

614,031
16,176561,409–

Asset retirement obligations
Other

16,028
11,94016,264
7,960

Total non-current liabilities

966,662

790,541

6,049,805

5,481,692

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

Total current liabilities
Non-current liabilities

Total liabilities

4

(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

Net assets
Shareholders' equity
Share capital

2,099,181

2,116,233

Capital surplus
Legal capital surplus

2,106,530

2,123,572

Other capital surplus

38,70440,854

Total capital surplus

2,145,235

2,164,427

132,600

132,600

303,000
9,399,789

303,000
9,506,895

9,835,389

9,942,495

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forwardTotal retained earnings
Treasury shares
Total shareholders' equity(185,261)(138,116)

13,894,544

14,085,040

8,552

13,067

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets

5

8,552

13,06723,501

9,589

13,926,598

14,107,697

19,976,404

19,589,389

Non-consolidated statements of income(Thousands of yen)

Net sales
Net sales of finished goods

Fiscal year ended

Fiscal year endedDecember 31, 2022

December 31, 2023

12,929,888

13,360,832

242,643285,815

13,172,532

13,646,648

Beginning finished goods inventory
Beginning merchandise inventory

1,238,796
12,537

1,168,901
10,257

Cost of products manufactured
Cost of purchased goods

9,675,612
191,078

10,450,663
234,892

Total

11,118,026

11,864,715

Ending finished goods inventory
Ending merchandise inventory

1,168,901
10,257

1,308,614
15,611

Total cost of sales

9,938,867

10,540,489

9,046
7,067

7,067
21,5083,235,644

3,091,717

501,150473,216Travel and transportation expenses
Remuneration for directors (and other officers)

73,45786,41374,80789,926

Salaries and allowances
Bonuses

546,378
153,266

556,374
147,354

Provision for bonuses
Retirement benefit expenses

29,792
29,211

27,92233,279Provision for product warranties
Provision of allowance for doubtful accounts

4,065(15,912)

4,036
1,890

Legal welfare expenses
Depreciation

118,60731,478

119,836
31,045

Rent expenses
Research and development expenses

38,628133,297

50,119232,168

Other

400,527

542,526

2,130,361

2,384,505

1,105,282

707,211

524

2,223

Dividend income
Foreign exchange gains

265,457
32,749245,642
15,601Other37,737

52,877

Total non-operating income

336,468

316,345

Net sales of goods
Total net sales
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 income6

(Thousands of yen)

Non-operating expenses
Interest expenses

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

1,962

1,594

Interest expenses on bonds
Sales discounts

75
1,428

–
1,884

Provision for loss on guarantees
Foreign withholding tax

16,176
17,568–8,549

Bad debt expenses
Other

4,600
3,277

–
1,219

Total non-operating expenses
Ordinary profit

45,08813,247

1,396,661

1,010,309

2,765

8,309

Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income

2,765

8,309

1,399,427

1,018,619

Income taxes - current

404,723

273,429

Income taxes - deferred(22,349)

13,347382,373286,777

1,017,053

731,841

Profit before income taxes

Total income taxes
Profit7Non-consolidated statements of changes in equity
Fiscal year ended December 31, 2022
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of period

Share capital

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus2,084,215

2,091,567

35,694

2,127,262

Legal retainedearnings
General reserve

132,600

303,000

Cumulative effects of changes inaccounting policies
Restated balance

Retainedearningsbrought
forward8,822,657
78,9872,084,215

2,091,567

35,694

2,127,262

Issuance of new shares - exerciseof share acquisition rights

3,942

3,938

3,938

Issuance of new sharesRestricted Stock

11,024

11,024

11,024

132,600

303,000

8,901,645

Changes during period

Dividends of surplus(518,909)

Profit1,017,053

Purchase of treasury shares
Disposal of treasury shares

3,010

3,010

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

14,966

14,962

3,010

17,973––498,144

2,099,181

2,106,530

38,7042,145,235

132,600

303,000

9,399,789

Valuation and translation
adjustments

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance

9,258,257

Treasury shares

Total
shareholders'equityValuationdifference on
available-forsale securities

Total valuationand translation
adjustments(47,235)

13,422,499

3,832

3,832

78,987
9,337,245

Shareacquisitionrights

30,00678,987(47,235)

13,501,487

Total net assets

13,456,338
78,987

3,832

3,832

30,006

13,535,326

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

7,880

7,880

Issuance of new sharesRestricted Stock

22,04822,048Dividends of surplus(518,909)(518,909)(518,909)

Profit1,017,053

1,017,053

1,017,053

Purchase of treasury shares(186,612)(186,612)(186,612)

Disposal of treasury shares

48,586

51,596

51,596

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

4,719

4,719

(6,504)(1,784)

498,144(138,026)

393,057

4,719

4,719

(6,504)391,272

9,835,389(185,261)

13,894,544

8,552

8,552

23,501

13,926,598

8

Fiscal year ended December 31, 2023
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus2,099,181

2,106,530

38,7042,145,235

Issuance of new shares - exerciseof share acquisition rights

9,344

9,334

9,334

Issuance of new sharesRestricted Stock

7,7087,708

7,708

Balance at beginning of period

Legal retained
earnings
General reserve

132,600

303,000

Retainedearnings
brought
forward9,399,789

Changes during period

Dividends of surplus(624,735)

Profit731,841

Disposal of treasury shares

2,150

2,150

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

17,052

17,042

2,150

19,192––

107,106

2,116,233

2,123,572

40,854

2,164,427

132,600

303,000

9,506,895

Valuation and translation
adjustments

Shareholders' equity
Retainedearnings
Total retained
earningsBalance at beginning of period

9,835,389

Treasury shares

Total
shareholders'equityValuationdifference on
available-forsale securities

Total valuationand translation
adjustments(185,261)

13,894,544

8,552

8,552

Share
acquisitionrights23,501

Total net assets

13,926,598

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

18,67818,678Issuance of new sharesRestricted Stock

15,416

15,416(624,735)(624,735)

731,841

731,841

49,29549,295

Dividends of surplus(624,735)

Profit731,841

Disposal of treasury shares

47,145

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

4,515

4,515

(13,911)(9,396)

107,106

47,145

190,495

4,515

4,515

(13,911)

181,098

9,942,495(138,116)

14,085,040

13,067

13,067

9,589

14,107,697

9

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

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

1,399,427

1,018,619

Depreciation
Increase (decrease) in allowance for doubtful accounts

157,385(15,912)

189,097
1,715

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits(3,752)(45,391)(6,326)(52,621)

Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for product warranties(1,979)4,065

14,441
4,036

Increase (decrease) in provision for loss on guarantees
Interest and dividend income

16,176(265,981)(16,176)(247,866)Interest expenses on borrowings and bonds
Foreign exchange losses (gains)2,037(30,363)

1,594(20,045)

Decrease (increase) inaccounts receivable - trade, and contract
assets(432,734)

228,704

Decrease (increase) in inventories
Increase (decrease) in trade payables(203,286)
177,578(250,445)(225,651)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses

2,700(7,449)(83,600)
2,912

Increase (decrease) in advances received
Other, net(62,421)(32,408)(75,351)
28,270Subtotal

657,688

511,307

Interest and dividends received
Interest paid

265,850(2,045)

247,480(1,598)

Income taxes paid

(693,472)(302,951)

Net cash provided by (used in) operating activities

228,020454,237

Payments into time deposits
Proceeds from withdrawal of time deposits(741,050)
671,275(742,435)
742,417

Purchase of investment securities
Purchase of property, plant and equipment(203,600)(629,674)(203,093)(571,264)(7,403)(4,790)(2,226)
1,840(915,244)(774,762)

Cash flows from financing activities
Proceeds from short-term borrowings

370,000

370,000

Repayments of short-term borrowingsRepayments of long-term borrowings(370,000)(110,676)(370,000)(116,550)

Redemption of bonds
Dividends paid

(100,000)(518,015)–(616,597)

Proceeds from issuance of shares
Purchase of treasury shares

6,066(186,612)

14,416–45,341(2,913)45,453(2,555)(866,810)(675,833)

Cash flows from investing activities

Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities

Proceeds from disposal of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

37,603

15,488Net increase (decrease) in cash and cash equivalents(1,516,431)(980,870)

Cash and cash equivalents at beginning of period

7,189,917

5,673,486

Cash and cash equivalents at end of period

5,673,486

4,692,616

10