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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 9, 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

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

June 28, 2023
June 28, 2023

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

June 29, 2023
Yes

Holding of financial results meeting:

Yes

TEL

03-6711-3714(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
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%
Year ended March 31, 2023
145,725
2.7
5,791(33.1)
5,923 (34.8)
2,460(63.1)
Year ended March 31, 2022
141,936
5.6
8,651
1.6
9,084
3.1
6,660
24.9
Note: Comprehensive income Year ended March 31, 2023

¥3,454 million [(51.5)%]

Year ended March 31, 2022

¥7,127 million [(9.2)%]

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/netowners ofassets
sales
parent/equity
Yen%%%–
2.7
4.0
4.0–
7.6
6.3
6.1

Diluted earnings pershareYen
25.30
68.47

Year ended March 31, 2023
Year ended March 31, 2022

Reference: Share of profit (loss) of entities accounted for using equity method

Year ended March 31, 2023¥(53) million

Year ended March 31, 2022¥– million(2) Consolidated financial position
Total assets
Millions of yen
149,274
147,061

As of March 31, 2023
As of March 31, 2022
Reference: Equity

Net assets
Millions of yen
92,65892,055

As of March 31, 2023

¥91,186 million

As of March 31, 2022

¥90,243 million

Equity ratio

Net assets per share
%
61.1
61.4

Yen
937.34928.28(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows fromoperating activities
Millions of yen
5,729
11,942

Cash flows frominvesting activities
Millions of yen(6,787)(7,516)

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,262)
5,603(3,166)7,790

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

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

–
–

11.00
11.00

–
–

16.00
4.00

27.00
15.00

2,631
1,462

39.5
59.5

2.9
1.6

–

11.00

–

11.00

22.00

42.9

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
154,000

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
5.7
7,800
34.7
8,000
35.1
5,000 103.2
51.41

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

97,553,655 shares As of March 31, 2022

97,500,000 shares

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

271,516 shares As of March 31, 2022

284,271 shares

97,255,529 shares Year ended March 31, 2022

97,277,626 shares

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

2

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results

Percentages indicate year-on-year changes
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Millions of yen
72,32370,901

Operating profit%
2.07.7

Earnings per share

Millions of yen
3,406
3,577

% Millions of yen
(4.8)
5,559
6.3
8,941

Profit% Millions of yen(37.8)
3,819(33.4)
8,598%(55.6)(29.5)

Diluted earnings per share

Yen
39.27
88.39

Year ended March 31, 2023
Year ended March 31, 2022

Ordinary profit

Yen––(2) Non-consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022
Reference: Equity

Net assets

Millions of yen
111,324
111,144

Millions of yen
79,95178,809As of March 31, 2023

¥79,951 million

As of March 31, 2022

¥78,809 million

Equity ratio

Net assets per share%
71.8
70.9

Yen821.85
810.66* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to C.I.
TAKIRON Corporation (the “Company”) and on certain assumptions deemed to be reasonable by the Company. Actual business and otherresults may differ substantially due to various factors.

3Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits

7,790

5,603

Notes and accounts receivable - trade, and contract assets

35,53433,295

Electronically recorded monetary claims - operating

11,584

13,637

Merchandise and finished goods

14,056

16,561Work in process

3,237

3,540

Raw materials and supplies

6,591

8,024

Deposits paid

14,00816,141

Other

1,625

1,330

Allowance for doubtful accounts

(23)

(40)

94,40398,095Buildings and structures, net

14,87014,352

Machinery, equipment and vehicles, net

9,781

9,347

Land

12,914

12,609

234

240

1,243

997

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

Leased assets, net
Construction in progress
Other, net

2,350

2,486

Total property, plant and equipment

41,39440,033

2,485

2,755

Investment securities

3,166

3,036

Deferred tax assets

3,026

2,238

Intangible assets
Investments and other assets

Retirement benefit asset

36458

2,550

2,658

Allowance for doubtful accounts

(2)

(2)

Total investments and other assets

8,777

8,389

Other

Total non-current assets
Total assets

452,65751,178147,061

149,274(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade25,78925,240Electronically recorded obligations - operating

5,402

5,964

Short-term borrowings

3,914

5,939

Lease liabilities

199

204

Income taxes payable

983

797

Accrued consumption taxes

389

284

2,260

1,810

211

181

Provision for bonuses
Provision for bonuses for directors (and other officers)Notes payable - facilities

592

477

Other

4,984

5,333

Total current liabilities

44,72846,233

1,434

1,426

Deferred tax liabilities

706

682

Provision for product warranties

394

699

Non-current liabilities
Lease liabilities

Provision for share awards

75

95

Retirement benefit liability

5,749

5,576

Asset retirement obligations

158

158

Other

1,757

1,743

Total non-current liabilities

10,277

10,38255,00556,615

Share capital

15,18915,204

Capital surplus

30,981

31,034Retained earnings

43,17543,003

Total liabilities
Net assetsShareholders’ equity

Treasury shares
Total shareholders’ equity

(178)

(170)

89,16789,07176

94

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(12)

(10)

Foreign currency translation adjustment

625

1,380

Remeasurements of defined benefit plans

387

650

1,076

2,114

Total accumulated other comprehensive income
Non-controlling interests

1,811

1,471

Total net assets

92,05592,658147,061

149,274

Total liabilities and net assets

5Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
Fiscal year ended
March 31, 2022
141,936

Net sales(Millions of yen)
Fiscal year ended
March 31, 2023
145,725

Cost of sales

102,113

108,415Gross profit

39,82237,310

Selling, general and administrative expenses

31,171

31,518Operating profit

8,651

5,791

Non-operating income
Interest income

3325

Dividend income

102

110

Rental income

152

141

Subsidy income

6866

Other384

263

Total non-operating income

741

608

Interest expenses

51139

Rental costs

7873

Share of loss of entities accounted for using equity method–

53

Foreign exchange losses

2158

Other156

151

Total non-operating expenses

307

476

9,084

5,923

Non-operating expenses

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

57

5Gain on sale of investment securities

107

81

Gain on sale of golf club membership–

5

Gain on revision of retirement benefit plan–

131

Gain on sale of businesses

58––

185

223

409

Loss on disposal of non-current assets

64

146

Impairment losses

Gain on liquidation of subsidiaries and associates
Total extraordinary incomeExtraordinary losses

358

1,345

Loss on sale of investment securities–

6

Loss on valuation of golf club membership–

7

Loss on liquidation of business

65–

Loss on termination of retirement benefit plan

51–

Provision for product warranties

206

294

–

140

Loss on COVID-19

747

1,939

Profit before income taxes

Total extraordinary losses

8,560

4,393

Income taxes - current

1,927

1,511

Income taxes - deferred(158)589

Total income taxes

1,769

2,100

Profit

6,791

2,292

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6130(167)

6,660

2,460

Consolidated statements of comprehensive income
Fiscal year ended
March 31, 2022
Profit6,791(Millions of yen)
Fiscal year ended
March 31, 2023
2,292

Other comprehensive income
Valuation difference on available-for-sale securities

(422)

18

Deferred gains or losses on hedges

(12)

2

Foreign currency translation adjustment

904

878

Remeasurements of defined benefit plans, net of tax

(134)

262

Total other comprehensive income
Comprehensive income

335

1,161

7,127

3,454

6,870

3,499

256(44)Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

7

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity

Balance at beginning ofperiod

Share capital

Capital surplus

15,18930,981Retainedearnings

Treasury shares

Total
shareholders’equity(86)

84,84038,757

Changes during period
Issuance of new shares
Dividends of surplus(2,242)(2,242)

Profit attributable toowners of parent

6,660

6,660

Purchase of treasury
sharesDisposal of treasury
shares0(134)

(134)

4343

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

––

0

4,418

(91)

4,326

15,18930,981

43,175(178)

89,167

Accumulated other comprehensive income

Balance at beginning ofperiod

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges499(0)Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

(157)

524

Total
accumulatedothercomprehensive
income866

Non-controllinginterests

1,660

Total net assets

87,367

Changes during period
Issuance of new shares
Dividends of surplus(2,242)

Profit attributable toowners of parent

6,660

Purchase of treasury
shares(134)

Disposal of treasury
shares43

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other thanshareholders’ equity

(422)

(12)

782

(137)

209

151

361

Total changes during
period

(422)

(12)

782

(137)

209

151

4,688

Balance at end of period

76

(12)

625

387

1,076

1,811

92,055

8Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity

Balance at beginning ofperiod

Share capital

Capital surplus

15,18930,981

1515

Retainedearnings

Treasury shares

Total
shareholders’equity(178)

89,16743,175

Changes during period
Issuance of new shares

30

Dividends of surplus(2,632)(2,632)

Profit attributable toowners of parent

2,460

2,460

Purchase of treasury
shares(0)(0)

Disposal of treasury
shares99

Change in ownershipinterest of parent due totransactions with noncontrolling interests

3737

Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

1552(172)8(95)15,20431,03443,003(170)

89,071

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges76(12)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

625

387

Total
accumulated
othercomprehensive
income1,076

Non-controllinginterests

1,811

Total net assets

92,055

Changes during period
Issuance of new shares

30Dividends of surplus(2,632)

Profit attributable toowners of parent

2,460

Purchase of treasury
shares(0)Disposal of treasury
shares9

Change in ownershipinterest of parent due totransactions with noncontrolling interests

37

Net changes in items
other thanshareholders’ equity

18

2755

263

1,038(340)698

Total changes during
period

18

2755

263

1,038(340)602

Balance at end of period

94(10)

1,380

650

2,114

1,471

92,6589Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes

8,560

4,393

Depreciation

5,244

5,434

Impairment losses

358

1,345

Increase (decrease) in retirement benefit liability

(111)

193

84

(450)

Loss (gain) on sale of investment securities
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on disposal of non-current assets

(107)

(75)

–53

7140

Interest and dividend income(136)

(136)

51

139

Increase (decrease) in provision for bonuses

Interest expenses
Decrease (increase) in trade receivables and contract assets

(724)

466

Decrease (increase) in inventories(1,030)(3,967)

Increase (decrease) in trade payables

2,533

(118)

Increase (decrease) in accrued consumption taxes

(779)

(105)

Increase (decrease) in deposits received

(581)

19–

(185)

Loss (gain) on liquidation of subsidiaries and associates
Loss (gain) on sale of businesses

(58)

–

Increase (decrease) in provision for product warranties

199

305

Other, net(1,029)(414)

Subtotal

12,4807,037Interest and dividends received

136

136

Interest paid

(60)

(140)

Income taxes refund (paid)
Net cash provided by (used in) operating activities(614)(1,304)

11,942

5,729(3,977)(3,704)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

66

18

Purchase of intangible assets(561)(1,066)

Purchase of investment securities

(121)

(292)

Proceeds from sale of investment securities

566

480

Proceeds from sale of businesses

72–

Proceeds from collection of short-term loans receivable
Decrease (increase) in deposits paid
Proceeds from the liquidation of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities

10899

–

(4,110)(2,133)

–

185

(351)

(274)

(7,516)(6,787)

(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

(425)

1,717

Repayments of lease liabilities

(126)

(89)

Repayments of long-term borrowings

(161)

–

Purchase of treasury shares

(106)

(0)

Dividends paid
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Dividends paid to non-controlling interests(2,242)(2,632)

–

(165)

(105)

(92)

Net cash provided by (used in) financing activities(3,166)(1,262)

136

132

Net increase (decrease) in cash and cash equivalents

1,394(2,186)

Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of period

6,712

7,790

(317)

–7,7905,603

Effect of exchange rate change on cash and cash equivalents

11