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 Nine Months Ended February 29, 2024
(Based on Japanese GAAP)
April 5, 2024
Company name:Sanko Gosei Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

7888
URL https://www.sankogosei.co.jp
Representative Director/President
Kenso Kuroda

Inquiries:
Director/Executive OfficerScheduled date to file Quarterly Securities Report:

Akira Serikawa
April 12, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

0763-52-7105(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended February 29, 2024 (from June 1, 2023 to February 29, 2024)(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
19.5
2,765
27.2
2,532
13.6
1,617
6.7
25.9
2,173
84.6
2,228 128.6
1,515 112.1

Net sales
Nine months ended February 29, 2024
Nine months ended February 28, 2023

Millions of yen
68,42257,265

Earnings per share

Diluted earnings per share

Yen
53.05
49.73

Nine months ended February 29, 2024
Nine months ended February 28, 2023

Yen––(2) Consolidated financial position
Total assets
As of February 29, 2024
As of May 31, 2023

Net assets

Millions of yen
70,73465,580Equity ratio

Millions of yen
28,30325,950Net assets per share
%
39.2
38.9

Yen
910.46835.82

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended May 31, 2023

Yen–

Yen
7.00

Yen–

Yen
9.00

Yen
16.00

Year ending May 31, 2024

–

10.00

–
10.00

20.00

Year ending May 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending May 31, 2024 (from June 1, 2023 to May 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
85,000
4.8
3,800
9.1
3,600
3.8
2,300
9.7
75.44

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended February 29, 2024
(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:

NoNo

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 February 29, 2024

30,688,569 shares As of May 31, 2023

30,688,569 shares

Number of treasury shares at the end of the period
As of February 29, 2024

204,786 shares As of May 31, 2023

204,786 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended February 29, 2024

30,483,783 shares Nine months ended February 28, 2023

230,483,817 shares

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

As of February 29, 2024

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

8,775998,553
6Electronically recorded monetary claims - operating
Accounts receivable - trade

1,044
15,7281,247
17,311

Merchandise and finished goods
Work in process

1,322
4,580

1,748
4,738

Raw materials and supplies
Other

1,763
3,329

1,969
2,570

Total current assets

36,644

38,146

Buildings and structures, net
Machinery, equipment and vehicles, net

10,0389,546

11,322
10,619Tools, furniture and fixtures, net
Land

1,881
5,072

2,197
5,146

Construction in progress

1,285

2,020

Total property, plant and equipment

27,82431,306

Goodwill
Other

80
453

55
466

Total intangible assets

534

522

Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets

3

17

24

559

734

577

759

28,93532,58865,58070,734

(Millions of yen)
As of May 31, 2023

As of February 29, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade

7,940

8,532

Electronically recorded obligations - operating
Short-term borrowings

3,794
5,811

3,470
6,332

Current portion of long-term borrowings
Income taxes payable

2,194
538

3,775
486

195
53133
–

Provision for bonuses
Provision for bonuses for directors (and other officers)
Other

7,182

8,153

Total current liabilities

27,71030,885

7,403

6,870

16

16

724

627

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other

3,774

4,030

Total non-current liabilities

11,91911,54539,63042,430Share capital
Capital surplus

4,008
4,071

4,008
4,071

Retained earnings
Treasury shares

16,399(43)

17,437(43)

Total shareholders' equity

24,43625,474

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities(1)2

Remeasurements of defined benefit plans
Foreign currency translation adjustment(170)
1,214(134)2,411

Total accumulated other comprehensive income

1,042

2,279

470

549

25,95028,30365,58070,734Non-controlling interests
Total net assets
Total liabilities and net assets

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

Nine months ended

February 28, 2023

February 29, 2024

Net sales
Cost of sales

57,26549,24768,422
58,958Gross profit

8,018

9,463

Selling, general and administrative expenses

5,844

6,698

Operating profit

2,173

2,765

Interest income
Dividend income

22154
1

Rental income
Gain on sale of scraps

4644

4549

Foreign exchange gains
Other216
272042

Total non-operating incomeNon-operating income

358

214

Non-operating expenses
Interest expenses

267329Loss on Derivative
Other03556
60

Total non-operating expenses

303

447

2,228

2,532

Gain on sale of non-current assets
Gain on sale of investment securities

0–71

National subsidies–

24

Total extraordinary income

033

Loss on retirement of non-current assets
Loss on sale of non-current assets

38
1058
21

Extra retirement payments
Loss on liquidation of subsidiaries and associates––34
1

Loss on tax purpose reduction entry of non-current assets
Total extraordinary losses

–4924
140

2,179

2,425

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5667

763

1,512

1,662

(3)

44

1,515

1,617

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

February 28, 2023

February 29, 2024
1,512

1,662

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1470

4
1,227

Remeasurements of defined benefit plans, net of tax

4736519

1,268

Comprehensive income

Total other comprehensive income

2,031

2,930

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,027

2,854

475

Comprehensive income attributable to non-controllinginterests

6