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 Six Months Ended June 30, 2023
(Based on Japanese GAAP)
August 14, 2023
Company name:AIRTECH JAPAN,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

6291
President

URL

https://www.airtech.co.jp
Shinya Hirasawa

Inquiries:
Director, Administration Department
Scheduled date to file Quarterly Securities Report:

Naoki Watanabe
August 14, 2023

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

Holding of quarterly 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 six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)(1) Non-consolidated operating results (cumulative)

Percentages indicate year-on-year changesNet sales
Six months ended June 30, 2023
Six months ended June 30, 2022

Millions of yen
7,210
6,032

Operating profit% Millions of yen
19.5506(28.3)
531

Earnings per share

Ordinary profit% Millions of yen
(4.6)
801
(64.1)
803% Millions of yen
(0.3)
572
(51.8)
599%(4.5)(49.0)

Diluted earnings per share

Yen
55.52
58.51

Six months ended June 30, 2023
Six months ended June 30, 2022

Profit

Yen
55.47
58.41

(2) Non-consolidated financial position
Total assets

Net assets

Millions of yen
19,903
19,976As of June 30, 2023
As of December 31, 2022

Equity ratio

Millions of yen
13,922
13,926

Net assets per share
%
69.9
69.6

Yen
1,344.89
1,350.02

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
60.00

Yen
60.00

–

60.00

60.00

Year ending December 31, 2023 (Forecast)Total

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

1Profit% Millions of yen(21.2)
800

Earnings per share%(21.3)

Yen
77.60

4. Notes(1) Application of special accounting methods for preparing quarterly non-consolidated financial statements: 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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023

10,496,450 shares As of December 31, 2022

10,478,710 shares

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

153,643 shares As of December 31, 2022

180,247 sharesAverage number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2023

10,309,868 shares Six months ended June 30, 2022

2

10,245,238 shares

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

As of June 30, 2023

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

6,365,019
4,368,479

5,644,789
4,593,173

Electronically recorded monetary claims - operating
Securities

1,442,664
586

1,337,114
652

Merchandise and finished goods
Work in process

1,179,158
673,923

1,172,278
502,671

640,80775,301

732,587
301,898(122)(2,035)

14,745,817

14,283,129

2,226,684

2,472,750

Other

2,136,846

2,193,196

Total property, plant and equipment

4,363,531

4,665,946

Intangible assets

65,92555,857

Investments and other assets
Other

801,247

898,414

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land

Allowance for doubtful accounts(117)(117)

Total investments and other assets

801,130

898,297

Total non-current assets

5,230,586

5,620,100

19,976,404

19,903,230

1,025,751
2,465,637

925,461
2,380,565

Short-term borrowings
Current portion of long-term borrowings

280,000
69,790280,000
59,794

Income taxes payable
Provision for product warranties

125,064
13,148

251,619
41,716

Provision for bonuses
Provision for loss on orders received

111,697
7,067

109,680
32,845

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

Other

984,987

1,047,949

5,083,142

5,129,631

Long-term borrowings
Provision for retirement benefits

304,575
614,031

246,413575,723

Provision for loss on guarantees
Other

16,17631,880–28,730Total non-current liabilities

966,662

850,866

6,049,805

5,980,497

Total current liabilities
Non-current liabilities

Total liabilities3

(Thousands of yen)
As of December 31, 2022

As of June 30, 2023

Net assets
Shareholders' equity
Share capital

2,099,181

2,109,225

Capital surplus
Retained earnings2,145,235
9,835,389

2,157,427
9,783,079

Treasury shares(185,261)(153,779)

13,894,544

13,895,952

Valuation difference on available-for-sale securities

8,552

13,993

Total valuation and translation adjustments

8,552

13,993

Total shareholders' equityValuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

4

23,501

12,786

13,926,598

13,922,732

19,976,404

19,903,230

Non-consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

June 30, 2022

June 30, 2023

Net sales
Cost of sales

6,032,613
4,474,911

7,210,747
5,530,906

Gross profit

1,557,701

1,679,841

231,472

236,463

Remuneration for directors (and other officers)
Salaries

37,564274,959

36,929271,973

Provision of allowance for doubtful accounts
Provision for bonuses(15,469)
31,063

1,912
28,675Retirement benefit expenses
Provision for product warranties

14,302283

15,282
28,568Other452,206

553,098

1,026,382

1,172,902

531,319

506,939

Selling, general and administrative expenses
Freight and packing costs

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

19334

Dividend income
Other

265,457
51,346245,642
58,892

Total non-operating income

316,823

304,869

1,713

822

Provision for loss on guarantees
Foreign withholding tax

23,591
17,568–8,341

Other

1,607

1,645

Total non-operating expenses

44,481

10,808803,662801,000

Gain on reversal of share acquisition rights

2,765

8,309

Total extraordinary income

2,765

8,309

Profit before income taxes

806,427809,309

Income taxes - current
Income taxes - deferred

212,022(5,030)229,137
7,747

Total income taxes

206,992

236,884

Profit599,435

572,425

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income5Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

June 30, 2022

June 30, 2023
806,427809,309

Depreciation
Increase (decrease) in allowance for doubtful accounts

70,078(15,469)

88,057
1,912

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits(1,686)(24,273)(2,017)(38,308)

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

2,325(265,477)

25,778(245,976)

Interest expenses
Decrease (increase) in trade receivables

1,713
587,812822––(119,144)

Decrease (increase) in inventories
Increase (decrease) in trade payables(168,999)(408,117)

86,352(185,362)

Increase (decrease) in accounts payable - other
Other, net(200,256)(166,262)

49,846(115,069)

Subtotal217,816

356,201

Interest and dividends received
Interest paid

162,288(1,092)

24,984(834)

Income taxes paid

(393,224)(106,561)

Net cash provided by (used in) operating activities(14,212)273,790

Payments into time deposits
Proceeds from withdrawal of time deposits(290,918)
290,913(268,150)
268,146

Purchase of property, plant and equipment
Purchase of investment securities(366,314)(203,600)(260,346)(103,093)

398

1,659

(569,519)(361,783)

Proceeds from short-term borrowings
Repayments of short-term borrowings

150,000(150,000)

280,000(280,000)

Repayments of long-term borrowings
Redemption of bonds(57,858)(100,000)(68,158)–

Dividends paid
Proceeds from issuance of shares(517,466)
3,315(615,510)
3,604

Purchase of treasury shares
Proceeds from disposal of treasury shares(186,571)
24,066–29,082

Decrease (increase) inaccounts receivable - trade, and contract
assetsCash flows from investing activities

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

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(1,635)(1,277)(836,150)(652,259)

37,877

13,939Net increase (decrease) in cash and cash equivalents(1,382,005)(726,313)

Cash and cash equivalents at beginning of period

7,189,917

5,673,486

Cash and cash equivalents at end of period

5,807,912

4,947,172

6