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, 2022
(Based on Japanese GAAP)
February 14, 2023
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 30, 2023
March 30, 2023

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

March 31, 2023
Yes

Holding of financial results meeting:

Yes

TEL03(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, 2022 (from January 1, 2022 to December 31, 2022)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended December 31, 2022
Year ended December 31, 2021

Millions of yen
13,172
14,289Operating profit% Millions of yen
(7.8)
1,105
14.4
1,991

Diluted earnings pershare
Yen
Yen
99.08
98.92
153.03152.39Earnings per share
Year ended December 31, 2022
Year ended December 31, 2021

Ordinary profit% Millions of yen(44.5)
1,396
40.7
2,195

Profit% Millions of yen(36.4)
1,017
40.5
1,584%(35.8)
39.4

Ordinary profit/total Operating profit/net
assetssales%%%
7.47.0
8.4
12.4
11.3
13.9

Profit/equity(2) Non-consolidated financial position
Total assets
As of December 31, 2022
As of December 31, 2021

Net assets

Equity ratio

Millions of yen
19,976
19,968Millions of yen
13,926
13,456

Cash flows fromoperating activities
Millions of yen
228
1,799

Cash flows frominvesting activities
Millions of yen(915)(458)

Net assets per share%
69.6
67.2

Yen
1,350.02
1,293.71(3) Non-consolidated cash flows

Year ended December 31, 2022
Year ended December 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(866)
5,673
(71)
7,189

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

Year ended December 31, 2021
Year ended December 31, 2022
Year ending December 31, 2023
(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

––

50.00
60.0050.00
60.00

518
624

32.7
60.7

4.1
4.5

–0.00

–60.00

60.00

176.9

3. Forecast of non-consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
13,000Operating profit% Millions of yen
(1.3)
950

Ordinary profit% Millions of yen(14.0)
1,100

Profit% Millions of yen(21.2)
800

Earnings per share%(21.3)

Yen
77.94

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, 2022

10,478,710 shares As of December 31, 2021

10,450,200 shares

Number of treasury shares at the end of the periodAs of December 31, 2022

180,247 shares As of December 31, 2021

72,019 shares

Average number of shares during the period
Year ended December 31, 2022

10,264,607 shares Year ended December 31, 2021

2

10,353,661 sharesNon-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of December 31, 2021

As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

7,815,177
1,177,512

6,365,019
1,018,837

Electronically recorded monetary claims - operating
Accounts receivable - trade

1,310,824
2,356,203

1,442,664
2,019,544–499

1,330,097
586

1,513,461
709,156

1,179,158
673,923

Raw materials and supplies
Prepaid expenses

483,907
26,315640,807
31,762

Other
Allowance for doubtful accounts

6,367(4,511)43,538(122)

15,394,914

14,745,817

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

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

1,365,561

1,799,646

120,495(67,859)

182,884(76,084)

Contract assets
Securities
Merchandise and finished goods
Work in process

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

52,636

106,800

356,608(261,974)

456,991(284,390)

94,633

172,600

10,841(5,210)11,293(7,247)

5,630

4,045

405,523(346,687)

412,177(369,223)

58,83542,953Land
Construction in progress

2,226,684
76,3072,226,684
10,799Total property, plant and equipment

Tools, furniture and fixtures
Accumulated depreciationTools, furniture and fixtures, net

3,880,289

4,363,531

Intangible assets
Software

81,67962,148

Leased assets
Other

331
3,471

–
3,776

Total intangible assets

85,48265,9253

(Thousands of yen)
As of December 31, 2021

As of December 31, 2022

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

91,534
134,741

301,683
134,741

Distressed receivables
Long-term prepaid expenses

11,64020,064

117
13,906

Deferred tax assets
Other

318,159
42,922

303,566
47,231

Allowance for doubtful accounts(11,640)(117)

Total investments and other assets

607,423

801,130

Total non-current assets

4,573,195

5,230,586

19,968,110

19,976,404

577,4312,247,096

586,525
2,465,637

Accounts payable - trade
Short-term borrowings

489,282
280,000

439,226
280,000

Current portion of bonds payable
Current portion of long-term borrowings

100,000
74,256–
69,790

Lease liabilities
Accounts payable - other

2,913
510,1202,555
496,218

Accrued expenses
Income taxes payable

275,468
427,318

267,992
125,064

Advances received
Deposits received177,541
105,205

115,119
94,649Provision for bonuses
Provision for loss on orders received

115,449
4,949

111,697
7,067

9,083
8,347

13,1488,450

Total current liabilities

5,404,464

5,083,142

Non-current liabilities
Long-term borrowings

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

Provision for product warranties
Other

410,785

304,575

Lease liabilities
Provision for retirement benefits

6,467
659,423

3,911
614,031

Provision for loss on guarantees
Asset retirement obligations–14,712

16,176
16,028

Other
Total non-current liabilities
Total liabilities

4

15,92011,9401,107,307

966,662

6,511,771

6,049,805

(Thousands of yen)
As of December 31, 2021

As of December 31, 2022

Net assets
Shareholders' equity
Share capital

2,084,215

2,099,181

Capital surplus
Legal capital surplus

2,091,567

2,106,530

Other capital surplus

35,69438,704

Total capital surplus

2,127,262

2,145,235

132,600

132,600

303,000
8,822,657

303,000
9,399,789

9,258,257

9,835,389

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity(47,235)(185,261)

13,422,499

13,894,544

3,832

8,552

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

3,832

8,552

30,00623,501

13,456,338

13,926,598

19,968,110

19,976,404

Non-consolidated statements of income(Thousands of yen)

Net sales
Net sales of finished goods

Fiscal year ended

Fiscal year ended

December 31, 2021

December 31, 2022

14,058,843

12,929,888

230,272

242,643

14,289,116

13,172,532

821,641
18,5241,238,796
12,537

Cost of products manufactured
Cost of purchased goods

10,599,388
170,044

9,675,612
191,078

Total

11,609,598

11,118,026

Ending finished goods inventory
Ending merchandise inventory

1,500,923
12,537

1,168,901
10,257

Total cost of sales

10,096,136

9,938,867

4,109
4,949

9,046
7,067

4,192,138

3,235,644

635,624

501,150Travel and transportation expenses
Remuneration for directors (and other officers)

60,942
104,678

73,45786,413

Salaries and allowances
Bonuses

540,936
176,575

546,378
153,266

Provision for bonuses
Retirement benefit expenses

31,281
34,47529,792
29,211

Provision for product warranties
Provision of allowance for doubtful accounts(37,761)(18,485)

4,065(15,912)

Legal welfare expenses
Depreciation

122,294
33,398

118,60731,478Rent expenses
Research and development expenses

34,389119,527

38,628133,297

Other363,025

400,527

2,200,902

2,130,3611,991,236

1,105,282

106

524

Dividend income
Foreign exchange gains

158,555
24,056

265,457
32,749Other31,063

37,737

Total non-operating income

213,782

336,468

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

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, 2021

December 31, 2022

2,448

1,962

300
–

75
16,176

Share issuance costs
Foreign withholding tax

39
4,828

–
17,568

Other

1,513

9,306

Total non-operating expenses

9,129

45,0882,195,888

1,396,661

Interest on bonds
Provision for loss on guarantees

Ordinary profit
Extraordinary income
Gain on sale of investment securities

26,971

–

–

2,765

26,971

2,765

Loss on valuation of membership

4,420

–

Total extraordinary losses

4,420

–

2,218,439

1,399,427

611,724

404,723

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

Profit before income taxes
Income taxes - current
Income taxes - deferred

22,338(22,349)

Total income taxes

634,063

382,373

1,584,376

1,017,053

Profit7

Non-consolidated statements of changes in equity
Fiscal year ended December 31, 2021
(Thousands of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginning of period

Retainedearnings
broughtforward

Share capital

Legal capitalsurplus

Other capitalsurplus

Total capitalsurplus

2,056,919

2,064,277

33,973

2,098,251

132,600

303,000

7,579,097

2,056,919

2,064,277

33,973

2,098,251

132,600

303,000

7,579,097

27,29627,289Legal retained
earnings
General reserve

Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Issuance of new shares

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

27,29627,2891,72029,010––

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

Treasury shares

Valuationdifference on
available-forsale securities

Total valuationand translation
adjustments

8,014,697(49,841)

12,120,026

10,453

10,45334,06012,164,540

8,014,697(49,841)

12,120,026

10,453

10,45334,06012,164,540

Total retained
earnings
Balance at beginning of period

ShareacquisitionrightsTotalshareholders'equityTotal net assets

Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Issuance of new shares
Dividends of surplus(340,817)

Profit

1,584,376

Disposal of treasury shares

54,58654,586(340,817)(340,817)

1,584,376

1,584,376

4,326

4,326

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)

1,291,797

Balance at end of period

9,258,257(47,235)

13,422,499

3,832

3,83230,006

13,456,338

8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

Retainedearnings
brought
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––

498,1442,099,181

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

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, 2021

December 31, 2022

2,218,439

1,399,427

Depreciation
Increase (decrease) in allowance for doubtful accounts

141,458(19,619)

157,385(15,912)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits

6,927(42,096)(3,752)(45,391)

Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for product warranties

840(42,159)(1,979)
4,065

Increase (decrease) in provision for loss on guarantees
Loss (gain) on sale of investment securities–(26,971)

16,176–

Interest and dividend income
Interest expenses on borrowings and bonds(158,662)
2,748(265,981)
2,037

Foreign exchange losses (gains)
Decrease (increase) in trade receivables(25,846)
1,110,674(30,363)––(432,734)

Decrease (increase) in inventories
Increase (decrease) in trade payables(608,194)(333,350)(203,286)
177,578

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses(16,752)(5,889)2,700(7,449)

Increase (decrease) in advances received
Other, net

30
33,364(62,421)(32,408)2,234,944

657,688

Interest and dividends received
Interest paid

158,669(2,796)

265,850(2,045)

Income taxes paid

(591,036)(693,472)

Net cash provided by (used in) operating activities

1,799,781

228,020

Payments into time deposits
Proceeds from withdrawal of time deposits(671,274)
671,256(741,050)
671,275

Purchase of investment securities
Proceeds from sale of investment securities–
50,632(203,600)–

Purchase of property, plant and equipment
Purchase of intangible assets(443,365)(788)(629,674)(7,403)(8,700)–(54,960)–(1,746)(4,790)(458,945)(915,244)

Decrease (increase) inaccounts receivable - trade, and contract
assetsSubtotal

Cash flows from investing activities

Purchase of membership
Payments for investments in capital of subsidiaries andassociates
Other, net
Net cash provided by (used in) investing activities

10(Thousands of yen)
Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings

380,000(400,000)

370,000(370,000)

Proceeds from long-term borrowings
Repayments of long-term borrowings

337,000(59,262)–(110,676)

Redemption of bonds
Dividends paid–(337,663)(100,000)(518,015)

Proceeds from issuance of shares
Purchase of treasury shares

9,860
(25)

6,066
(186,612)

Proceeds from disposal of treasury shares
Other, net

3,280(4,704)

45,341(2,913)

Net cash provided by (used in) financing activities(71,514)(866,810)

Effect of exchange rate change on cash and cash equivalents

25,846

37,603

Net increase (decrease) in cash and cash equivalents

1,295,167(1,516,431)

Cash and cash equivalents at beginning of period

5,894,750

7,189,917

Cash and cash equivalents at end of period

7,189,917

5,673,486

11