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 Six Months Ended June 30, 2020
(Based on Japanese GAAP)
August 6, 2020
Company name:

Optorun Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6235
Representative:

Inquiries:

URL

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

Representative Director and President/CEODirector and Senior Managing Executive
Officer General Manager of Management
Department and Corporate Planning

Ihei Hayashi

Toshinori Takahashi

OfficeScheduled date to file Quarterly Securities Report:

August 6, 2020

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

Holding of quarterly financial results meeting:

Yes

TEL

03-6635-9487(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2020 (from January 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)

Six months ended June 30, 2020
Six months ended June 30, 2019

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
16,590 (37.8)
3,652 (50.6)
3,952 (45.6)
2,884 (51.9)
26,677
22.3
7,396
36.3
7,262
27.0
5,994
50.9
Earnings per share

Diluted earnings per share

Yen
67.69
143.52Six months ended June 30, 2020
Six months ended June 30, 2019

Yen
65.36
136.48(2) Consolidated financial position
Total assets
As of June 30, 2020
As of December 31, 2019

Net assets

Millions of yen
56,97456,509Equity ratio

Millions of yen
34,61234,819

%
60.8
61.6

2. Cash dividends
Annual dividends per share

Year ended December 31, 2019Year ending December 31, 2020

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, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)
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
46,2007.9
12,000
10.3
12,000
8.8
9,200
1.1
216.941

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

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

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2020

44,358,000 shares As of December 31, 2019

44,358,000 shares

Number of treasury shares at the end of the period
As of June 30, 2020

1,663,076 shares As of December 31, 2019

1,950,731 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2020

42,606,833 shares Six months ended June 30, 2019

241,770,875 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2019

As of June 30, 2020

AssetsCurrent assetsCash and deposits

26,969,840

24,520,137

Notes and accounts receivable - trade
Work in process

4,252,961
11,103,107

4,107,550
13,825,571

Raw materials and supplies
Other

4,070,363
1,148,282

4,068,727
1,298,515

Allowance for doubtful accounts(350,710)(347,766)

47,193,845

47,472,735

2,763,710
65,516

3,052,345
73,113

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

795,174

763,379

Investments in capital
Deferred tax assets

4,825,976
605,295

4,475,644
897,488259,618

239,403

Total investments and other assets

6,486,065

6,375,915

Total non-current assets

9,315,292

9,501,375

56,509,137

56,974,110

2,735,267
401,691

4,166,771
400,90286,864
21,58866,00020,644545,000
13,988,698

1,059,446
12,846,507

318,218
501,817427,483
407,014

Other

1,226,510

1,101,869

Total current liabilities

19,825,656

20,496,639

120,000
45,15587,00034,217

1,078,794
147,514

1,322,273
143,206

472,759

278,457

Other

Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Advances received
Provision for bonuses
Provision for product warranties

Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

3

1,864,222

1,865,155

21,689,879

22,361,794

(Thousands of yen)
As of December 31, 2019

As of June 30, 2020

Net assets
Shareholders' equity
Share capital
Capital surplus

400,000
9,513,800

400,000
9,697,126

Retained earnings
Treasury shares

25,801,100(128,263)

26,139,377(109,489)

Total shareholders' equity

35,586,637

36,127,013(767,379)(1,514,697)(767,379)(1,514,697)

34,819,258

34,612,316

56,509,137

56,974,110

Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
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)(Thousands of yen)Six months ended
June 30, 2019

Six months ended
June 30, 2020

Net sales

26,677,423

16,590,440

Cost of sales

15,712,410

9,932,257

Gross profit

10,965,013

6,658,182

Selling, general and administrative expenses

3,568,697

3,005,776

Operating profit

7,396,315

3,652,406

Non-operating income
Interest income

31,12728,752

Rental income
Foreign exchange gains

54,370–42,911
211,886

Subsidy income
Other

1,620
3,916

83,253
18,228

Total non-operating income

91,034385,031

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Donations
Other
Total non-operating expenses

7,129

3,595

61,915
155,640–
51,446–92

15,841
14,107

224,777

84,9897,262,573

3,952,448

Gain on change in equity

355,100–

Total extraordinary income

355,100–

Loss on retirement of non-current assets

–

1,039

Total extraordinary losses

–

1,039

Profit before income taxes

7,617,673

3,951,408

Income taxes

1,623,144

1,067,222

Profit5,994,529

2,884,185

(371)

–

5,994,900

2,884,185

Ordinary profit
Extraordinary income

Extraordinary losses

Loss attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended
June 30, 2019
ProfitSix months ended
June 30, 2020

5,994,529

Other comprehensive income
Valuation difference on available-for-sale securities

2,884,185

244–(444,810)(513,241)(60,704)(234,076)(505,269)(747,318)

Comprehensive income

5,489,259

2,136,866Comprehensive income attributable toComprehensive income attributable to owners of parent

5,489,151

2,136,866

107–

Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Thousands of yen)Six months ended
June 30, 2019

Six months ended
June 30, 2020

Cash flows from operating activities
Profit before income taxes
Depreciation

7,617,673
132,077

3,951,408
119,086

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

63,730(94,392)(2,943)
116,727

Increase (decrease) in provision for bonuses for directors (andother officers)(104,926)–

Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability(87,001)
3,743(94,803)(4,307)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)(257,274)–Interest income
Interest expenses(31,127)7,129(28,752)
3,595

Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity

364,401

76,932

155,640

51,446

methodLoss (gain) on change in equity(355,100)–

Decrease (increase) in trade receivables
Decrease (increase) in inventories

833,536
8,481,708(139,806)(2,890,492)

Increase (decrease) in trade payables
Increase (decrease) in advances received

2,091,021(4,410,822)

1,575,477(1,130,969)

355,380
589,446

89,344(448,440)

Decrease (increase) in consumption taxes refund receivable
Other, net
Subtotal

15,354,845

1,243,500

Interest received
Interest paid

31,127(7,129)28,752(3,595)

Income taxes paid

(1,146,553)(572,811)

Net cash provided by (used in) operating activities

14,232,291

695,846(69,493)(3,838)(415,252)(22,724)

Purchase of investment securities
Payments for investments in capital–(1,006,435)(24,000)–

Net cash provided by (used in) investing activities(1,079,766)(461,976)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets(156,150)–

Repayments of long-term borrowings
Purchase of treasury shares(95,496)(77)(53,864)(151)

Repayments of lease obligations
Proceeds from exercise of employee share options(12,303)
161,820(11,882)
77,805(2,275,831)(2,541,079)(11,902)–(2,389,941)(2,529,172)

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(414,009)(154,400)

Net increase (decrease) in cash and cash equivalents

10,348,573(2,449,703)

Cash and cash equivalents at beginning of period

15,740,508

26,969,840

Cash and cash equivalents at end of period

26,089,081

24,520,137

7