Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the eventof any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended December 31, 2021
(Based on Japanese GAAP)
Company name:February 14, 2022

Optorun Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6235

URL http://www.optorun.co.jp

Representative:

Representative Director and President/CEO
Director and Executive Officer

Ihei Hayashi

Inquiries:

General Manager of Corporate Management Mitsuo Yamada
Dept.

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

March 29, 2022
March 29, 2022

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

March 30, 2022
Yes

Holding of financial results meeting:Yes

TEL 03-6635-9487(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated Results for Year Ended December 31, 2021 (January 1, 2021 to December 31, 2021)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions ofMillions of
%
%
%
%
yen
yen
yen
yen
Year Ended December 31, 2021
30,891(17.6)
7,025(18.6)
7,901
(8.2)
6,330
(6.9)
Year Ended December 31, 2020
37,491(12.4)
8,628(20.7)
8,609(21.9)
6,796(25.3)
Earnings per share

Diluted earnings per share

Yen

parent/equity

143.12154.00(2) Consolidated financial position
Total assets
Millions of yen
64,674As of December 31, 2021
54,327
As of December 31, 2020

Net assets
Millions of yen
46,08339,515

Ordinary profit/total assets

%
14.8
18.3

Yen

146.83159.05

Year Ended December 31, 2021
Year Ended December 31, 2020

Profit attributable to owners of

%
13.3
15.5

Yen

%
71.2
72.7

1,066.04
918.96

Cash flows from operating Cash flows from investing Cash flows from financing
activities
activities
activities
Millions of yen
Millions of yen
Millions of yen
Year Ended December 31, 2021
10,685375(2,735)
Year Ended December 31, 2020
(1,047)(2,466)（535）

Annual dividends per share
1st quarter-end

Year ended December 31, 2020
Year ended December 31, 2021
Year ending December 31, 2022
(Forecast)

Yen

－
－
－

2nd quarter-end 3rd quarter-end Fiscal year-end
Yen

0.00
0.00
0.00

Yen

－
－
－

%
22.7
23.0

Net assets per share

Equity ratio(3) Consolidated cash flows

2. Cash dividends

Operating profit/net sales

Yen

50.00
50.00
42.00

equivalents at end of
periodMillions of yen
32,27322,722

Total cash
dividends(Total)

Total
Yen

50.00
50.00
42.00

2,148
2,160

Dividend
Ratio ofpayoutdividends toratio
net assets(Consolidated) (Consolidated

31.4
34.1
39.5

5.7
5.0

3. Forecast of consolidated financial results for the year ending December 31, 2022
Net sales
Full year

Millions of yen

31,900Operating profit%

3.3

Millions of yen

6,500

Percentages indicate year-on-year changes
Profit attributable toEarnings per shareowners of parent

Ordinary profit
%

(7.5)

Millions of yen

6,300

%

(20.3)

Millions of yen

4,600

%

(27.3)

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):
Newly consolidated : Optorun Semiconductor Equipment Co.,Ltd.

Yes(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

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 December 31, 2021

44,358,000 shares

As of December 31, 2020

44,358,000 shares

1,141,692 shares As of December 31, 2020

1,386,947 shares

Number of treasury shares at the end of the period
As of December 31, 2021

Average number of shares during the period
As of December 31, 2021

43,114,190 shares

As of September 30, 2020

42,734,511 shares

Yen

106.44

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2020

As of December 31, 2021

AssetsCurrent assets
Cash and deposits

22,722,838

32,273,511

Notes and accounts receivable - trade
Work in process

9,769,664
7,297,242

6,013,382
7,050,959

Raw materials and supplies
Other

3,850,246
1,275,525

5,804,136
2,389,818

Allowance for doubtful accounts(343,692)(386,509)

44,571,825

53,145,299

2,307,116

2,276,369

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation(879,184)(887,836)

Buildings and structures, net

1,427,932

1,388,532

Machinery, equipment and vehicles

1,145,099

1,506,172

Accumulated depreciation(714,557)(725,205)

Machinery, equipment and vehicles, net

430,541

780,966Land

842,996

950,661

Leased assets
Accumulated depreciation

115,314(77,4149

121,732(92,751)

Leased assets, net

37,90028,980Construction in progress
Other

333,282319,758

1,213,167
428,094(198,494)(263,641)

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

121,264

164,452

3,193,917

4,526,761

752,494

610,733

Other

69,34066,361

Total intangible assets

821,835

677,094

Investment securities
Investments in capital

350,000
4,749,314

350,000
5,237,111

Deferred tax assets
Other

412,501
227,905354,334
384,189

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

3

5,739,721

6,325,635

9,755,474

11,529,492

54,327,299

64,674,791

(Thousands of yen)
As of December 31, 2020

As of December 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

1,702,784

3,246,321

Short-term loans payable
Current portion of long-term loans payable

401,675
66,000400,000
54,000

Lease obligations
Income taxes payable

21,565355,785

17,614
1,389,156

Advances received
Provision for bonuses

8,921,891
310,830

9,830,666
296,775

Provision for product warranties
Other

421,152
1,453,008

257,965
1,564,039

Total current liabilities

13,654,694

17,056,540

Non-current liabilities
Long-term loans payable

54,000－

Lease obligations
Deferred tax liabilities

27,195641,885

15,701
1,180,914

Retirement benefit liability
Other

156,835
277,277

179,987
157,923

Total non-current liabilities

1,157,193

1,534,526

14,811,888

18,591,067

Shareholders' equity
Capital stock

400,000

400,000

Capital surplus
Retained earnings

9,819,208
30,053,492

9,454,013
34,235,194(91,311)(75,318)

40,181,389

44,013,889

Foreign currency translation adjustment(692,903)

2,056,449

Total accumulated other comprehensive income(692,903)

2,056,449

26,925

13,38539,515,411

46,083,724

54,327,299

64,674,791

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2020

December 31, 2021

Net sales
Cost of sales

37,491,308
22,809,423

30,891,957
17,502,351

Gross profit

14,681,884

13,389,606

Selling, general and administrative expenses

6,053,539

6,364,333

Operating profit

8,628,345

7,025,272

Interest income
Rent income

42,461
72,19532,45424,929Foreign exchange gains
Subsidy income

119,694

732,427
100,420

Non-operating income

Other

26,89689,543

Total non-operating income

261,248979,775

Interest expenses
Share of loss of entities accounted for using equity

7,174
40,843

7,874
81,104

methodContribution

25,94410,000Foreign exchange loss
Other

186,116
19,755－
4,698

Non-operating expenses

Total non-operating expenses

279,835

103,677

8,609,757

7,901,370

Gain on sales of non-current assets
Gain on change in equity

2,564
－

9,000
22,747

Gain on step acquisitions
Gain on sale of investments

66,719－－899,200

Total extraordinary income

69,283930,948

1,222

59,1701,222

59,170

Profit before income taxes

8,677,818

8,773,149

Income taxes - current
Income taxes - deferred

2,101,874(228,257)

1,828,610
611,461

Total income taxes

1,873,616

2,440,071

Profit6,804,202

6,333,077

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5

7,374

2,822

6,796,827

6,330,254

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
December 31, 2020
ProfitOther comprehensive income
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

Fiscal year ended
December 31, 2021

6,804,202

6,333,077

163,985

2,291,234(89,509)458,095

74,4752,749,329

6,878,678

9,082,406

6,872,032
6,646

9,079,607
2,799

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended December 31, 2020
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

400,000

Retained earnings

9,513,800

Treasury shares

25,801,100(128,263)

Total shareholders'equity35,586,637

Changes of items during
periodDividends of surplus(2,544,436)(2,544,436)

Profit attributable toowners of parent

6,796,827

6,796,827

305,407

Disposal of treasury
sharesPurchase of treasury
shares37,103

342,511

(151)

(151)

Net changes of items
other than shareholders'equity－305,4074,252,391

36,9524,594,751

400,000

9,819,208

30,053,492(91,311)40,181,389

Total changes of items
during period
Balance at end of current
periodAccumulated other comprehensive
incomeBalance at beginning ofcurrent period

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income(767,379)(767,379)

Non-controllinginterests

Total net assets-

34,819,258

Changes of items during
periodDividends of surplus(2,544,436)

Profit attributable toowners of parent

6,796,827

Disposal of treasury
shares342,511Purchase of treasury
shares(151)

Net changes of items
other than shareholders'equity74,47574,47526,925

101,400

Total changes of items
during period

74,47574,47526,925

4,696,152

Balance at end of current
period(692,903)(692,903)

26,92539,515,411

7

Fiscal year ended December 31, 2021
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

400,000

Retained earnings

9,819,208

Treasury shares

30,053,492(91,311)

Total shareholders'equity40,181,389

Changes of items during
periodDividends of surplus(2,148,552)(2,148,552)

Profit attributable toowners of parent

6,330,254

6,330,254

176,864

Disposal of treasury
sharesPurchase of treasury
shares16,161

193,026

(168)

(168)

(542,059)

Purchase of shares of
consolidated
subsidiaries(542,059)

Net changes of items
other than shareholders'equity－(365,194)4,181,702

15,992

3,832,500

400,000

9,454,013

34,235,194(75,318)

44,013,889

Total changes of items
during period
Balance at end of current
periodAccumulated other comprehensive
incomeBalance at beginning ofcurrent period

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeNon-controllinginterests(692,903)(692,903)

26,925

Total net assets

39,515,411

Changes of items during
periodDividends of surplus(2,148,552)

Profit attributable toowners of parent

6,330,254

Disposal of treasury
shares193,026

Purchase of treasury(168)

Purchase of shares of
consolidated
subsidiaries(542,059)
2,749,352

2,749,352(13,539)

2,735,813

Total changes of items
during period

2,749,352

2,749,352(13,539)

6,568,313

Balance at end of current
period

2,056,449

2,056,449

13,38546,083,724

Net changes of items
other than shareholders'equity8Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
December 31, 2020

Fiscal year ended
December 31, 2021

Cash flows from operating activities
Profit before income taxes
Depreciation

8,677,818
243,546

8,773,149
321,407

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

38,001(7,018)

162,11342,817

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties(11,323)(80,665)(53,191)(163,187)

Increase (decrease) in retirement benefit liability
Loss (gain) on sales of non-current assets

9,321(2,564)

23,152(9,000)Loss on retirement of non-current assets
Interest income

1,222(42,461)

59,170(32,454)

Interest expenses
Foreign exchange losses (gains)

7,174
211,549

7,874(701,187)

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

40,843

81,104

Loss (gain) on change in equity
Loss (gain) on step acquisitions－(66,719)(22,747)－

Loss (gain) on investment in capital
Decrease (increase) in notes and accounts receivable -－(5,503,517)(899,200)
4,411,177

tradeDecrease (increase) in inventories

4,101,966(721,325)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received(1,061,874)(5,074,950)

697,615
819,103

Decrease (increase) in consumption taxes refund
receivable(134,499)(411,777)

Other, net

364,544(867,923)

Subtotal

1,710,395

11,516,690

Interest income received

42,46132,454

Interest expenses paid
Income taxes paid

(7,174)(2,281,055)(7,874)(855,617)

Net cash provided by (used in) operating activities(535,372)

10,685,652

Cash flows from investing activities
Purchase of property, plant and equipment(760,237)(939,529)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

40,525(33,596)

9,000(23,791)

Payments for investments in capital
Proceeds from investments in capital(24,000)－(12,000)
1,361,836

Collection of loans receivable
Payments of loans receivables

78,015(78,015)－－－(19,943)(270,206)－(1,047,514)

375,572

Payments for lease and guarantee deposits
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended
December 31, 2020

Fiscal year ended
December 31, 2021

Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations(86,864)(21,588)(66,000)(21,213)Purchase of treasury shares
Proceeds from exercise of stock options(151)
185,175(168)
62,220(2,543,479)－(2,145,020)(565,020)(2,466,908)(2,735,202)(197,206)

1,224,651

Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
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(4,247,002)

9,550,673

Cash and cash equivalents at beginning of period

26,969,840

22,722,838

Cash and cash equivalents at end of period

22,722,838

32,273,511

10