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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 2, 2023
Company name:
C.I. TAKIRON Corporation
Stock exchange listing: Tokyo
Stock code:
Representative:

4215
URL https://www.takiron-ci.co.jp/
Representative Director President
Yuji Fukuda

Inquiries:

General Manager Finance & Accounting
Dept.

Shuji Kondo

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 10, 2023
December 5, 2023

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

03-6711-3714(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2023
67,943(6.3)
2,393 (22.5)
2,588 (22.0)
1,888
1.4
Six months ended September 30, 2022
72,5153.0
3,090 (35.5)
3,318 (33.6)
1,862 (46.5)
Earnings per share

Diluted earnings per share

Yen
19.41
19.16

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
151,916
149,274

As of September 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
95,041
92,658

Net assets per share
%
61.6
61.1

Yen
960.72937.34

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
11.00
11.00

Yen–

Yen
4.00

Yen
15.00

–

11.00

22.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Full year

Millions of yen
146,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
0.2
6,200
7.1
6,300
6.4
5,000 103.2
51.37

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(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:

No
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 September 30, 2023

97,597,530 shares As of March 31, 2023

97,553,655 shares

Number of treasury shares at the end of the period
As of September 30, 2023

234,876 shares As of March 31, 2023

271,516 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

97,306,770 shares Six months ended September 30, 2022

297,233,564 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

5,603
33,295

6,868
30,844

Electronically recorded monetary claims - operating
Merchandise and finished goods

13,637
16,561

15,618
16,963Work in process
Raw materials and supplies

3,540
8,024

4,065
7,526

Deposits paid
Other

16,141
1,330

17,825
1,487

(40)

(20)

98,095

101,179

14,352

14,338

Machinery, equipment and vehicles, net
Land

9,347
12,609

9,743
12,622

Construction in progress
Other, net

997
2,726

9632,788

Total property, plant and equipment

40,03340,457

Intangible assets
Investments and other assets

2,755

2,939

Investment securities
Deferred tax assets

3,036
2,238

1,460
2,536

Other
Allowance for doubtful accounts

3,116
(2)

3,347
(4)

Total investments and other assets

8,389

7,340

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Total non-current assets
Total assets

351,178

50,737

149,274

151,916(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade25,24023,768

Electronically recorded obligations - operating
Short-term borrowings

5,964
5,939

6,379
5,931

Income taxes payable
Provision for bonuses

797
1,810

1,612
1,942

Other

6,479

6,658

Total current liabilities

46,233

46,291

682
5,576

743
5,724

158
699

159
673

Non-current liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Provision for product warranties
Other

3,264

3,283

Total non-current liabilities

10,382

10,58356,61556,875

Share capital
Capital surplus

15,20431,034

15,21631,046

Retained earnings
Treasury shares

43,003(170)

44,501(146)

Total shareholders' equity

89,071

90,618

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

94

180

Deferred gains or losses on hedges
Foreign currency translation adjustment

(10)
1,380

0
2,131

Remeasurements of defined benefit plans

650

606

2,114

2,919

1,471

1,503

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

492,658

95,041

149,274

151,916

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

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

72,51553,296

67,94350,144Gross profit

19,218

17,799Selling, general and administrative expenses

16,127

15,405

Operating profit

3,090

2,393

Dividend income
Share of profit of entities accounted for using equity method

65–

57
36

Rental income
Other

70
212

70285

Total non-operating income

348

450

Non-operating income

Non-operating expenses
Interest expenses

31143

Rental costs
Other

37
51

38
73

Total non-operating expenses

120

255

3,318

2,588

4–

1302

Gain on sale of golf club membership
Gain on termination of retirement benefit plan–
131

14–

Gain on liquidation of subsidiaries and associates

185–

Total extraordinary income

321

318

Loss on disposal of non-current assets
Loss on sale of investment securities

63–

110

Loss on valuation of investment securities
Provision for product warranties

–391

50–

Loss on COVID-19

140–

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities

Extraordinary losses

596

61

Profit before income taxes

Total extraordinary losses

3,044

2,845

Income taxes

1,136

1,055

Profit

1,907

1,789

45(98)

1,862

1,888

Profit(loss)attributable to non-controlling interests
Profit attributable to owners of parent5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2022

September 30, 2023

1,907

1,789

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(150)
69

86
10

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

1,551
(77)

885
(46)

Total other comprehensive income

1,392

936

3,300

2,725

3,015

2,692

284

33

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parentComprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Share of loss (profit) of entities accounted for using equity

Six months ended

Six months ended

September 30, 2022

September 30, 2023
3,044

2,845

2,607(207)2,634
112(78)–131(302)

–50

–

(36)

methodLoss (gain) on disposal of non-current assets

59

10Interest and dividend income
Interest expenses(79)
31(70)
143

Decrease (increase) in trade receivables
Decrease (increase) in inventories

1,314(3,633)

707
157

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

2,230(72)(1,195)430

Increase (decrease) in deposits received
Loss (gain) on liquidation of subsidiaries and associates

(9)
(185)

91
–

Increase (decrease) in provision for product warranties
Other, net367(317)

(26)
(509)

Subtotal

5,072

5,176

79(33)

70(147)

Interest and dividends received
Interest paid
Income taxes refund (paid)

(671)

(516)

Net cash provided by (used in) operating activities

4,446

4,582

(1,614)
4(1,990)
56

(487)
(8)

(593)
(10)

–
(3,107)

1,761(1,683)

Proceeds from the liquidation of subsidiaries andassociates

185–

Other, net

(225)

68

(5,253)(2,392)

Net increase (decrease) in short-term borrowings
Repayments of lease liabilities

1,155(28)

(603)
(80)

Purchase of treasury shares
Dividends paid

(0)
(1,559)(0)(390)

Dividends paid to non-controlling interests

(92)

(1)

Net cash provided by (used in) financing activities(525)(1,076)

Effect of exchange rate change on cash and cash equivalents

248

150

Net increase (decrease) in cash and cash equivalents(1,083)

1,264

Cash and cash equivalents at beginning of period

7,790

5,603

Cash and cash equivalents at end of period

6,706

6,868

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipmentPurchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Decrease (increase) in deposits paid

Net cash provided by (used in) investing activities
Cash flows from financing activities

7