Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Member, Financial Accounting Standards Foundation
The Announcement date: November 10, 2023 (14:00 JST)

Consolidated Financial Results
for the Six Months Ended March 31, 2024
(Under Japanese GAAP)
Company name:TOMOEGAWA CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code:
3878
URL:
https://www.tomoegawa.co.jp/
Representative:
Yoshio Inoue, President and Representative Director, Group CEO
Inquiries:
Masaaki Yamaguchi, Director, Senior Managing Executive Officer, Group CFO
Telephone:+81-54-256-4319
Scheduled date to file quarterly securities report:
November 13, 2023
Scheduled date to commence dividend payments:‐
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended March 31, 2024 (from April 1, 2023 to
September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2023

16,497(5.9)

795(34.0)

996(26.8)

431(65.6)

September 30, 2022

17,532

12.0

1,205

14.6

1,361

9.4

1,255

51.3

Note: Comprehensive income

For the six months ended September 30, 2023:
For the six months ended September 30, 2022:
Basic earnings
per share

Six months ended¥1,297 million¥1,867 million[(30.6 %)][89.5%]

Diluted earnings
per share
Yen

Yen

September 30, 2023

41.62

‐

September 30, 2022

116.19‐(2) Consolidated financial position
Total assets
As of

Net assets

Net assets
per share

Equity-to-asset ratio

Millions of yen

September 30, 2023

44,504

18,17930.6

1,312.17

March 31, 2023

42,94818,37032.7

1,251.36

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:¥13,608 million¥14,027 million%

Yen

Millions of yen

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

‐

0.00

‐

0.00

Fiscal year ending
March 31, 2024 (Forecast)Fiscal year-end

Total

Yen

Yen

‐

15.00

15.00

‐

15.00

15.00

Note:
(1) Revisions to the forecasts of cash dividends most recently announced: None
(2) The above "2. Cash dividends" shows dividends for Common stock. For details of dividends for Preferred stock (unlisted), therights of which are different from those of Common stock issued by the Company, please refer to "Reference: Dividends forPreferred Stock" below.

3. Forecasts of Consolidated financial results for Fiscal Year 2024 (from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Full year

36,000Operating profit% Millions of yen

5.4

1,500

Profit attributable toowners of parent

Ordinary profit% Millions of yen(26.9)

1,500% Millions of yen(30.3)

Basic earnings
per share%

Yen

600 (58.7)

57.85

Note:
(1) Revisions to the forecasts of consolidated financial results most recently announced: None
(2) Basic earnings per share is calculated assuming that the amount not attributable to common stockholders is zero, since all of
the Class A preferred stocks were purchased and cancelled on September 29, 2023, and no preferred dividends will be paid.

* 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): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

10,389,406 shares

As of March 31, 2023

10,389,406 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2023

18,371 shares

As of March 31, 2023

18,354 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Six months ended September 30, 2023

10,371,046 shares

Six months ended September 30, 2022

10,371,053 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements in this document, including earnings forecasts, are based on information
currently available to the Company and certain assumptions that the Company considers reasonable, and are notintended as a promise by the Company that they will be achieved. Actual results may differ materially due tovarious factors. For the assumptions used as the basis for the earnings forecasts and special remarks regarding
the use of the earnings forecasts, please refer to “Ⅰ.Qualitative information regarding financial results for thesix months 3. Explanation of consolidated earnings forecasts and other forward-looking statements” on page 8(Attached Material).
Reference: Dividends for Preferred Stock
The breakdown of dividends per share related to Class-A Preferred stock that have different rights from
common stock is as follows:
Annual dividends per share

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024 (Forecast)First quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

‐

‐

‐

‐

Fiscal year-end

Total

Yen

Yen

‐

50.00

50.00

‐

‐

‐

Note: As a result of the purchase and cancellation of all 1,000,000 unredeemed Class A preferred stocks as of March 31, 2023 on
September 29, 2023 based on the resolution of the Board of Directors meeting held on September 11, 2023, no dividends will
be paid on the Class A preferred stock for the fiscal year ending March 2024.

【Attachment】

Contents of Attachment
Ⅰ．Qualitative information regarding financial results for the six months ･････････････････････････

2

1. Explanation of operating results ･･････････････････････････････････････････････････････

2(1) Review of operating results ･･･････････････････････････････････････････････････････

2

・Net sales and profit (loss)････････････････････････････････････････････････････････

2

・Numbers by Quarter ･･･････････････････････････････････････････････････････････

2

・Observation of the First Half of the Fiscal Year 2024 (April to September, 2023) ･････････････

3(2) Consolidated operating results by segment ･･･････････････････････････････････････････

4

・Reportable segments figures ･････････････････････････････････････････････････････

4

・Overview of reportable segments ･････････････････････････････････････････････････

4

2. Explanation of financial position ･･････････････････････････････････････････････････････

6

・Financial Position ･････････････････････････････････････････････････････････････

6

・Explanation regarding Financial Position ･･･････････････････････････････････････････

6(Review of cash flow position) ･･････････････････････････････････････････････････････

7

・Cash Flow ･･･････････････････････････････････････････････････････････････････

7

・Explanation regarding Cash Flow ･････････････････････････････････････････････････

7

3. Explanation of consolidated earnings forecasts and other forward-looking statements ････････････

8

Ⅱ．Quarterly consolidated financial statements and significant notes thereto ･･････････････････････

9

1. Consolidated balance sheet ･･････････････････････････････････････････････････････････
2. Consolidated statement of income (cumulative) and consolidated statement of comprehensive income(cumulative) ･････････････････････････････････････････････････････････････････････

9
11

3. Consolidated statement of cash flows ･･････････････････････････････････････････････････

12

4. Notes to quarterly consolidated financial statements ･･････････････････････････････････････

13(Notes on Going Concern Assumption) ････････････････････････････････････････････････

13(Notes on significant changes in the amount of shareholders’ equity) ･････････････････････････

13(Segment Information) ･････････････････････････････････････････････････････････････

13

p. 1

Ⅰ．Qualitative information regarding financial results for the six months
Figures in Million Yen, unless otherwise noted
1. Explanation of operating results(1) Review of operating results
・Net sales and profit (loss)
Net salesfrom April 1, 2023 through September 30, 2023
ProfitBasic
attributable
Operating
Ordinary
earnings
profitprofitto owners
per shareof parent

Current Fiscal Year (FY 2024)
First Half (1H)

16,497

795

996

431

41.62Yen

Converted into Million
U.S. dollars (Note)

117.0

5.6

7.1

3.1

US$0.30

Previous Fiscal Year (FY 2023)
1H

17,532

1,205

1,361

1,255

116.19Yen

Change to FY 2024 from FY 2023

▲1,035

▲409

▲364

▲823

▲74.57Yen

Percent Change from FY 2023
number

▲5.9%▲34.0%▲26.8%▲65.6%-

Initial forecasts for FY2024 1H

17,500

600

600

200

16.87Yen

Most recent FY2024 1H
forecasts released on October24, 2023

16,500

800

1,000

400

38.57Yen

Change from FY2024 1H Initial
forecasts▲1,003

195

396

231

24.75Yen

Change from FY2024 1H mostrecent forecasts

▲3

▲5

▲4

31

3.05YenNote: U.S. dollar amounts are converted from Yen, for convenience only, at the rate of US$1.00= ¥141.06
・Numbers by Quarterp. 2

・Observation of the First Half of the Fiscal Year 2024 (April to September, 2023)
During the First Half (1H) of the Fiscal Year (FY) 2024 (April to September, 2023), net sales
amounted to ¥16,497 million, down ¥1,035 million or ▲5.9% from that of the previous FY 1H, when the
Toner Segment was particularly strong.

Due to the slowdown of the Chinese economy and otherfactors, the Toner Segment, which accounts for more than 30% of consolidated net sales, experienced
inventory adjustments from the end of the previous FY and price competition expanded, resulting in asignificant decline in sales, and sales of some functional non-woven fabric-related products were also
affected. On the other hand, there was a temporary order acquisition in the Display-related businessthat was not initially anticipated and the Semiconductor-related business also performed better than
expected at the beginning of the period.
Operating profit was ¥795 million, down ¥409 million or ▲34.0% from the previous FY 1H
number. While the above-mentioned decrease in sales due to the slowdown in the Chinese economy
and the increase in upfront expenses for the launch of new products that had been expected from the
beginning, the penetration of price pass-on activities that has continued since the previous FY, the positiveeffect of the depreciation of the yen, and higher-than-expected sales in the highly profitable
Semiconductor and Display-related business resulted in a significant increase in profit compared to theinitial forecasts, as announced on October 24, 2023, despite a decrease in profit compared to the previous
FY 1H.
Ordinary profit was ¥996 million, only down ¥364 million or ▲26.8% from that of the previous
FY 1H, thanks to foreign exchange gains resulting from the depreciation of the yen and the continued
equity earnings from an affiliated company that handles processing of optical film used for displays.
Profit attributable to owners of parent is ¥431 million, down ¥823 million or ▲65.6% from thatof the previous FY 1H, due to the absence of extraordinary income from asset sales recorded in theprevious FY 1H.

p. 3

(2) Consolidated operating results by segment
・Reportable segments figures
FY 2023
1H

Toner

Semiconductor
and Displayrelated

Functional Sheet

Security MediaNew Business
Development

Change to FY
2024
from FY 2023

FY 2024
1H

Percent Change
from FY 2023
numbers

Net sales

7,322

5,583

▲1,738▲23.7%

Operatingprofit

1,150

371

▲779

▲67.8%Net sales

2,948

3,399

450

15.3%

Operatingprofit

202

302

99

49.2%

Net sales

5,234

5,272

38

0.7%

Operatingprofit(loss)

▲129

56

186

-

Net sales

1,907

2,103

196

10.3%

Operatingprofit

137

261

123

89.4%

Net sales

28

25

▲2

▲10.2%

Operating
loss

▲236

▲263

▲26

-

・Overview of reportable segments< Toner >As for the Toner Segment, net sales were ¥5,583 million, down ¥1,738 million or ▲23.7% fromthat of the previous FY 1H, and Segment (operating) profit was ¥371 million, down ¥779 million or ▲67.8% from that of the previous FY 1H.
Despite an increase in overseas-related sales thanks to the depreciation of the yen, thedecrease in net sales was caused by a decline in orders received that have continued since the end of
the previous FY, as a result of inventory adjustments among major customers. Price competition withcompetitors has also accelerated this trend. Segment (operating) profit decreased due to the significant
sales decline and higher costs from higher raw material and fuel prices.
< Semiconductor and Display-related >As for the Semiconductor and Display-related Segment, net sales were ¥3,399 million, up ¥450
million or +15.3% from that of the previous FY 2Q, and Segment (operating) profit was ¥302 million, up¥99 million or +49.2% from that of the previous FY 1H.
Net sales of the Semiconductor Packaging Tape SBU significantly exceeded the plan, but were
down compared to the previous FY 1H, which was particularly strong. On the other hand, net sales of
the Optical Film SBU increased due to the receipt of a temporary order that was not initially expected in
the current FY 1H.

Segment (operating) profit increased from the same period of the previous FY,

despite an increase in new product development costs, thanks to the effect of higher sales in the Opticalp. 4Film SBU, as well as an increase in the operating rate of coating machines, a key facility common to thissegment.
< Functional Sheet >As for the Functional Sheet Segment, net sales were ¥5,272 million, up ¥38 million or +0.7%
from that of the previous FY 1H, and Segment (operating) profit was ¥56million (loss of ¥129 million in
the previous FY 1H).
Net sales increased thanks to the acquisition of projects and product price revisions in the overallbusiness compared to the same period of the previous FY, although orders for the Functional Non-woven
Fabric SBU were sluggish due to the slowdown of the Chinese economy.
Segment (operating) profit increased compared to the same period of the previous FY thanks to
the reflection of cost increases in product prices, as well as various cost reduction effects, although costs
increased due to higher raw material and fuel prices.
< Security Media >As for the Security Media Segment, net sales were ¥2,103 million, up ¥196 million or +10.3%
from that of the previous FY 1H, and Segment (operating) profit was ¥261 million, up ¥123 million or+89.4% from that of the previous FY 1H.
Despite a decrease in card-related products, passbooks and other products increased, as didorders for advertising printed materials. Segment (operating) profit was affected by higher energy prices,
but benefited from increased net sales.
< New Business Development >As for the New Business Development Segment, net sales were ¥25 million, down ¥2 million or▲10.2% from that of the previous FY 1H, and Segment (operating) loss was ¥263 million (loss of ¥236
million in the previous FY 1H).
We are mainly engaged in the development and net sales of iCas-related products, and isparticularly focused on the launch of new products for semiconductor manufacturing equipment.

p. 5

2. Explanation of financial position
・Financial Position

September 30, 2023
Total assets

Net assets

Equity-to-asset
ratio

Net assets
per share

End of FY 2024 1H
September 30, 2023

44,504

18,17930.6%

1,312.17Yen

Converted into Million
U.S. dollars (Note)

297.5

121.5

-

US$8.77

End of FY 2023, March
31, 2023

42,94818,37032.7%

1,251.36Yen

Change to FY 2024 1Hfrom FY 2023

1,556

▲191

▲2.1%

60.81Yen

Note: U.S. dollar amounts are converted from Yen, for convenience only, at the rate of US$1.00= ¥149.58
・Explanation regarding Financial Position
Total assets amounted to ¥44,504 million at the end of the current FY 1H, up ¥1,556 million fromthe end of the previous FY. Current assets totaled ¥22,378 million, up ¥840 million from the end of theprevious FY.

This was mainly due to an increase in cash and deposits and notes and accounts

receivable-trade, as a result of the refund of consumption taxes receivable recorded at the end of theprevious FY in the current FY and the fact that the end of the current FY 1H under review was a holiday
for financial institutions. Non-current assets totaled ¥22,126 million, an increase of ¥715 million fromthe end of the previous FY. This was mainly due to an increase in property, plant and equipment due tocapital expenditures and an increase in value of invested marketable securities.
Total liabilities amounted to ¥26,324 million, up ¥1,747 million from the end of the previous FY.
Current liabilities totaled ¥18,056 million, up ¥1,977 million from the end of the previous FY. This was
mainly due to an increase in short-term borrowings, despite a decrease in current portion of long-termloans payable.

Non-current liabilities totaled ¥8,268 million, down ¥229 million from the end of theprevious FY, mainly due to the repayment of long-term debt.

Interest-bearing debt increased ¥879

million from the end of the previous FY to ¥13,592 million.
Net assets amounted to ¥18,179 million, down ¥191 million from the end of the previous FY.
This was due to a decrease in capital surplus resulting from the redemption of Class A preferred stock,despite the recording of Profit attributable to owners of parent and increases in unrealized gains onavailable-for-sale securities and foreign currency translation adjustments resulting from the depreciationof the yen against foreign currencies.
During 1H of FY2024, as disclosed on September 11, 2023, TOMOEGAWA is working to
improve its financial soundness by redeemed all of its preferred shares ahead of schedule, thereby
reducing the burden of preferred dividend payments.

Even after redemption, net asset ratio has

remained above 40%, maintaining a stable financial foundation.

p. 6

(Review of cash flow position)・Cash Flow

September 30, 2023
Cash flows fromoperatingactivities

Cash flows
from investing
activities

Cash flows
from financing
activities

Cash and cash
equivalents at
end of period

End of FY 2024 1H
September 30, 2023

1,966

▲569

▲758

5,142

Converted into Million
U.S. dollars (Note)

13.9

▲4.0

▲5.4

34.4

End of FY 2023 1H
September 31, 2023

910

111

▲1,1894,894

Change to FY 2024 fromFY 2023

1,056

▲680

430

247

Note: U.S. dollar amounts are converted from Yen, for convenience only, at the rate of US$1.00= ¥141.06 as for Cash flow and ¥149.58 as for Cash and cash equivalents at end of period
・Explanation regarding Cash Flow
Cash and cash equivalents (net cash) amounted to ¥5,142 million at the end of the current FY
1H, up ¥859 million from the end of the previous FY.
Net cash from operating activities for the current FY 1H was ¥1,966 million, up ¥1,056 million
from the previous FY 1H. The main inflow factors were Profit before income taxes of ¥923 million anddepreciation (¥789 million) and a decrease in inventories (¥249 million), while the outflow factors included
share of profit of entities accounted for using equity method (¥171 million) and an increase in tradereceivables (¥196 million).
Net cash used in investing activities for the current FY 1H was ¥569 million (¥111 million wasprovided in the previous FY 1H).

The main outflow factors were purchase of property, plant andequipment (¥562 million).
Net cash used in financing activities for the current FY 1H was ¥758 million, down ¥430 million
from the previous FY 1H. The main inflow factors were net increase in short-term borrowings (¥1,902
million) and proceed from long-term borrowings (¥500 million), while the outflow factors included
repayments of long-term borrowings (¥1,578 million) and purchase of treasury shares by redemption ofClass A preferred stock (¥1,135 million).

p. 7

3. Explanation of consolidated earnings forecasts and other forward-looking statements
As for the Second Half (2H) of the current FY and beyond, in the Toner Segment, while theimpact of the market downturn in China is bottoming out, we will take aggressive measures to leverage
its competitive advantage, such as focusing on further market share expansion and developing
emerging markets. In the Semiconductor-related business, while a full recovery in mounting tape sales
is expected to be delayed until the next FY, we expect to launch new products developed forsemiconductor production equipment that can contribute to "Sustainability" by reducing power
consumption using its own special paper-making technology, and plan to accelerate new developmentby establishing a new Tohoku sales office at the end of October. On the other hand, in the Displayrelated business, which performed well in the current FY 1H, we expect a decline in sales due to thescheduled completion of deliveries of large projects ordered in the current 1H, and we will proceed withthe consolidation of facilities to improve production efficiency.
We have decided to leave its full-year forecasts unchanged from the initial forecasts made on
May 12, 2023.

Although 1H results exceeded the initial forecasts at each stage of profit and the

Security Media Segment is expected to continue to grow steadily, we expect profit growth to be sluggish
in the current FY 2H due to the impact of lower sales in the Display-related business and inventory
reduction throughout the supply chain in the Toner Segment, which is expected to reduce profit, as well
as planned investments and repairs to improve the production infrastructure, mainly for the functional
non-woven fabric-related products.
・Forecasts of Current Fiscal Year, which will end on March 31, 2024
Forecasts released(Release Date)
Full year(May 12, 2023)

Net sales

OperatingprofitOrdinary
profitProfitattributable toowners ofparentBasicearnings
per share

36,000

1,500

1,500

600

57.85YenYour continuous support of TOMOEGAWA will be greatly appreciated.

p. 8

Ⅱ．Quarterly consolidated financial statements and significant notes thereto
1. Consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - tradeFinished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for
directors (and other officers)
Other
Total non-current liabilities
Total liabilities

p. 9

As of September 30, 2023

4,353
6,557
6,837
61
2,310
1,430
△13
21,537

5,216
6,878
6,843
63
2,285
1,101
△11
22,378

4,475
3,628
5,398
2,031
15,533
391

4,516
3,704
5,398
2,161
15,782
396

5,012
547
△74
5,485
21,41042,948

5,495
455
△3
5,947
22,12644,504

5,222
4,289
2,433
146
518
3,468
16,078

5,439
6,319
1,756
256
496
3,786
18,056

5,339
1,446

4,938
1,515

309

306

1,404
8,498
24,577

1,508
8,268
26,324

(Millions of yen)
As of March 31, 2023
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

p. 10

As of September 30, 2023

2,122
2,033
8,197
△31
12,322

2,122
897
8,423
△31
11,412

241

445

492
971

877
873

1,705

2,196

4,342
18,37042,948

4,570
18,17944,504

2. Consolidated statement of income (cumulative) and consolidated statement of comprehensive
income (cumulative)(Millions of yen)Six months ended
September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive
incomeattributabletononcontrolling interests

p. 11

Six months ended
September 30, 2023

17,532
13,749
3,782
2,577
1,205

16,497
12,770
3,726
2,931
795

2
46
－

6
43
62

181

171

83
314

51
334

96
62
158
1,361

99
34
133
996

469
－
469

2
4
6

37
1
38
1,792
355
△32
322
1,470

69
9
79
923
246
48
295
628

1,255
214

431
197

2

280

479

486

△85

△98

397
1,867

668
1,297

1,546

922

320

374

3. Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase(decrease)inprovisionforretirement benefits for directors (and otherofficers)
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted
for using equity method
Loss (gain) on sale of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Other, net
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of periodp. 12

Six months ended
September 30, 2023

1,792
806
37

923
789
69

14

5

△85

△37

△49
96
△125

△49
99
△38

△181

△171

△469
180
△171
△488
△133
1,221
140
△100
△369
－
18

1
△196
249
195
187
2,029
110
△98
△388
307
6

910

1,966

△20
21
△440

△20
18
△562

574

4

－
△23

45
△55

111

△569

△64

1,902

200
△951
△0
△253
△5
△114

500
△1,578△1,135
△204
△146
△94

△1,189

△758

325

220

157

859

4,737
4,894

4,282
5,142

4. Notes to quarterly consolidated financial statements(Notes on Going Concern Assumption)
None.
(Notes on significant changes in the amount of shareholders' equity)
Based on the resolution of the Board of Directors meeting held on September 11, 2023, theCompany purchased and canceled 1,000,000 shares of the Class A preferred stock issued by theCompany on September 29, 2023. The purchase of the Class A preferred stock increased treasury
shares by ¥1,135 million, and the cancellation of treasury shares decreased capital surplus andtreasury shares by ¥1,135 million each. As a result, capital surplus and treasury shares amounted
to ¥897 million and ¥31 million, respectively, at the end of the second quarter of the current fiscal
year.
(Segment Information)
ⅠPrevious fiscal year (From April 1, 2022 to September 30, 2022)
Information concerning net sales and profit (loss) by reportable segment, and disaggregated revenue
information(Millions of yen)

Toner

Reportable segments
SemicondNew
uctor
ReportabFunction Security Businessandleal Sheet media Developm
Displaysegments
entrelated(Note 2)

(Note 1)

Other

Total

(Note 3)Per
Reconcilconsolidated
ing
financial
items
statements

Net sales
Japan

1,113

1,707

4,776

1,907

28

9,533

57

9,590

－

9,590

2,384

185

70

－

－

2,640

－

2,640

－

2,640

802

1,046

320

－

－

2,169

－

2,169

－

2,169

2,108

1

1

－

－

2,111

－

2,111

－

2,111

North America

735

7

65

－

－

808

－

808

－

808

Other

176

－

－

－

－

176

－

176

－

176

7,322

2,948

5,234

1,907

28

17,44057

17,497－

17,497

Other revenue

－

－

－

－

－

－

34

34

－

34

Revenues fromexternal

7,322

2,948

5,234

1,907

28

17,44091

17,532－

17,532

－

－

301

77

－

379

305

684

(684)

－

7,322

2,948

5,535

1,984

28

17,819397

18,217(684)

17,532

1,150

202

(129)

137

(236)

1,124

43

1,168

36

1,205

China (including
Hong Kong)
Other Asia
EuropeRevenue fromcontracts withcustomers

customers
Transactions
with othersegments
Net sales
Segment profit(loss)

Notes:
1. The “Other” classification is for business segments not included in a reportable segment and includes
logistics services, etc.
2. Segment profit (loss) in the above adjustment \36 million represents eliminations for inter-segment
transactions.
p. 13

3. Segment profit (loss) is reconciled to Operating profit presented in the consolidated statement of income(cumulative) and consolidated statement of comprehensive income (cumulative).

ⅡCurrent fiscal year (From April 1, 2023 to September 30, 2023)
1. Information concerning net sales and profit (loss) by reportable segment, and disaggregatedrevenue information(Millions of yen)

Toner

Reportable segments
SemicondNew
uctor
ReportabFunction Security Businessandleal Sheet media Developm
Displaysegments
entrelated(Note 2)

(Note 1)

Other

Total

(Note 3)Per
Reconcilconsolidated
ing
financial
items
statements

Net sales
Japan

1,011

1,959

4,735

2,103

24

9,834

77

9,912

－

9,912

1,602

143

25

－

－

1,771

－

1,771

－

1,771

685

1,266

461

－

1

2,415

－

2,415

－

2,415

1,873

1

3

－

－

1,877

－

1,877

－

1,877

North America

296

28

46

－

－

371

－

371

－

371

Other

113

－

－

－

－

113

－

113

－

113

5,583

3,399

5,272

2,103

25

16,38477

16,462－

16,462

－

－

－

－

－

－

34

34

－

34

5,583

3,399

5,272

2,103

25

16,384112

16,497－

16,497

－

－

975

22

－

998

301

1,300

(1,300)－Net sales

5,583

3,399

6,248

2,126

25

17,382414

17,797(1,300)16,497

Segment profit(loss)

371

302

56

261

(263)

728

44

773

22

795

China (including
Hong Kong)
Other Asia
EuropeRevenue fromcontracts withcustomers
Other revenue
Revenues fromexternalcustomers
Transactions
with othersegments

Notes:
1. The “Other” classification is for business segments not included in a reportable segment and includes
logistics services, etc.
2. Segment profit (loss) in the above adjustment \22 million represents eliminations for inter-segment
transactions.
3. Segment profit (loss) is reconciled to Operating profit presented in the consolidated statement of income(cumulative) and consolidated statement of comprehensive income (cumulative).

2. Matters related to changes in reportable segments, etc.
For better understanding of the Group's future vision and business development activities, theCompany has changed the name of our reportable segment from the former "Electronic Materials
Segment" to "Semiconductor and Display-related Segment" and from the former "Functional Paper
Segment" to the "Functional Sheet Segment" effective from the first quarter of the current
consolidated fiscal year.
The segment information for the first half of the previous fiscal year is disclosed under the newreportable segment name. However, there is no change in the method of classifying reportablesegment.
p. 14