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 Resultsfor Six Months Ended June 30, 2022
(Based on Japanese GAAP)
2company name:

August 5, 2022

Optorun Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6235

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

Representative:

Representative Director and President/CEODirector and Executive Officer

Bin FanInquiries:

General Manager of Corporate Management Mitsuo Yamada
Dept.

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

August 5, 2022
-Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
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, 2022 (January 1, 2022 to December 31, 2022)(1) Consolidated operating results
Net sales

Six Months Ended June 30,2022
Six Months Ended June 30,2021

Millions ofyen
13,508
14,946%(9.6)(9.9)

Earnings per share

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions of%%%
yen
yen
yen
3,292
(4.0)
4,468
14.1
2,919
6.7
3,431
(6.1)
3,915
(0.9)
2,737
(5.1)

Diluted earnings per share

Yen

Six Months Ended June 30,2022
Six Months Ended June 30,2021

Yen

67.48
63.56

65.99
61.91

(2) Consolidated financial position
Total assets
Millions of yen
74,473As of June 30, 2022
64,674As of December 31, 2021

Net assets
Millions of yen
50,33646,083

2. Cash dividends

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

1st quarter-end
Yen－－

Equity ratio
%
67.6
71.2

Annual dividends per share
2nd quarter-end 3rd quarter-end
Fiscal year-end
Yen
Yen
Yen

0.00
0.00
0.00

Total

Yen－

50.00

50.00

－

42.00

42.00

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

Operating profit

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

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

31,9003.3

6,500(7.5)

6,300(20.3)

4,600(27.3)

106.44

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2022

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, 2022

44,358,000 shares

As of December 31, 2021

44,358,000 shares

1,002,692 shares As of December 31, 2021

1,141,692 shares

Number of treasury shares at the end of the period
As of June 30, 2022

Average number of shares during the period
As of June 30, 2022

43,270,656 shares

As of March 31, 2021

43,043,986 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2021

As of June 30, 2022

AssetsCurrent assets
Cash and deposits

32,273,511

35,319,144

Notes and accounts receivable - trade
Work in process

6,013,382
7,050,959

5,499,674
10,675,518

Raw materials and supplies
Other

5,804,136
2,389,818

7,574,962
2,289,247

Allowance for doubtful accounts(386,509)(446,691)

53,145,299

60,911,855

4,526,761

5,424,622

Goodwill
Other

610,733
66,361

578,619
58,701

Total intangible assets

677,094

637,320

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

Investments and other assets
Investment securities

350,000

350,000

Investments in capital
Deferred tax assets

5,237,111
354,334

6,337,151
398,288

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

3

384,189413,799

6,325,635

7,499,239

11,529,492

13,561,182

64,674,791

74,473,038

(Thousands of yen)
As of December 31, 2021

As of June 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade3,246,321

4,968,500

400,000
54,000400,000
21,000

Lease obligations
Income taxes payable

17,614
1,389,156

13,898927,141

Advances received
Contract liabilities

9,830,666－－
13,290,964

296,775
257,965

303,747
190,243

Other

1,564,039

1,924,214

Total current liabilities

17,056,540

22,039,710

15,701
1,180,914

8,900
1,736,364

Retirement benefit liability
Other179,987
157,923

194,648
157,002

Total non-current liabilities

1,534,526

2,096,915

18,591,067

24,136,626

Shareholders' equity
Capital stock

400,000

400,000

Capital surplus
Retained earnings

9,454,013
34,235,194

9,563,656
34,994,170(75,318)(66,148)

44,013,889

44,891,678

Foreign currency translation adjustment

2,056,449

5,424,441

Total accumulated other comprehensive income

2,056,449

5,424,441

13,385

20,292

46,083,724

50,336,412

64,674,791

74,473,038

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

Provision for bonuses
Provision for product warranties

Non-current liabilities
Lease obligations
Deferred tax liabilities

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)
Six Months Ended June 30,2021 Six Months Ended June 30,2022
Net sales

14,946,955

13,508,497

Cost of sales

8,189,866

7,345,048

Gross profit

6,757,088

6,163,449

Selling, general and administrative expenses

3,326,016

2,870,899

Operating profit

3,431,071

3,292,549

Non-operating income
Interest income

8,896

42,511

Rent income
Foreign exchange gains

14,619－

11,77348,653

Share of profit of entities accounted for using equity
method489,666

1,070,286

Subsidy income
Other

14,68415,088

1,897
3,791

Total non-operating income

542,955

1,178,913

3,239

2,957

55,097－

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profitExtraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on closedown

73

1758,410

2,974

3,915,617

4,468,488

9,000

75

9,000

75

52,3291,617－

43,351

52,32944,969Profit before income taxes

3,872,288

4,423,595

Income taxes - current

1,131,221

1,498,568

Profit2,741,067

2,925,026

Total extraordinary losses

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

5

3,359

5,234

2,737,707

2,919,791

Consolidated statements of comprehensive income(Thousands of yen)
Six Months Ended June 30,
2021

Six Months Ended June 30,2022

Profit2,741,067

2,925,026

Other comprehensive income
Foreign currency translation adjustment

1,224,611

2,903,206

273,612466,457

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

1,498,223

3,369,663

4,239,290

6,294,690

4,234,510
4,780

6,287,783
6,906

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

6Consolidated statements of cash flows(Thousands of yen)Six months ended
June 30, 2021

Six months ended
June 30, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation

3,872,288
163,220

4,423,595
222,446

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

81,044(44,731)

83,85260,181

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties

2,799(168,983)(19,889)(67,722)

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

12,792(9,000)

14,660(75)Loss on retirement of non-current assets
Interest income

52,329(8,896)

1,617(42,511)

3,239(439,019)

2,957(795,770)

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

55,097(48,653)

Decrease (increase) in notes and accounts receivable trade

5,761,026

1,304,832

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(444,7589
880,054(4,016,024)
375,144

Increase (decrease) in advances received
Increase (decrease) in contract liabilities

1,419,016－－
3,249,445

Decrease (increase) in consumption taxes refund
receivable

123,792

444,098

Other, net(240,291)

83,861

Subtotal

11,071,020

5,276,047

Interest income received

8,896

42,511

Interest expenses paid
Income taxes paid

(3,239)(331,700)(2,957)(1,419,609)

10,744,977

3,895,992(414,0389(549,200)

9,000(3,846)76(6,815)

Payments for investments in capital
Payment of security deposit(12,000)(19,943)(12,000)－Net cash provided by (used in) investing activities(440,829)(567,939)

Interest expenses
Foreign exchange losses (gains)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets7

(Thousands of yen)Six months ended
June 30, 2021

Six months ended
June 30, 2022

Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations(33,000)(11,158)(33,000)(10,761)

Proceeds from exercise of share options
Cash dividends paid

37,200(2,143,600)

29,760(2,161,306)

Net cash provided by (used in) financing activities(2,150,558)(2,175,308)

651,696

1,892,888

Net increase (decrease) in cash and cash equivalents

8,805,286

3,045,632

Cash and cash equivalents at beginning of period

22,722,838

32,273,511

Cash and cash equivalents at end of period

31,528,124

35,319,144

Effect of exchange rate change on cash and cashequivalents

8